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Are electronic signatures enforceable on business contracts?

On Behalf of | Oct 24, 2025 | Business & Commercial

Traditionally, contracts were signed with wet ink and in person. However, in our modern electronic age, many deals close with a click or a tap. And, for some, they wonder whether  those e-signatures carry the same legal weight as a wet-ink signature.

Can e-signatures match wet-ink signatures?

Yes. Maryland’s version of the Uniform Electronic Transactions Act and the federal ESIGN Act recognize electronic signatures and records, if certain conditions are met. Of course, the weight of that yes rests on those conditions.

Maryland’s UETA framework

First, a record or signature cannot be denied legal effect solely because it is electronic. If the parties agree to transact electronically and the system reliably associates a person with a record, an e-signature generally satisfies a “signed” requirement. This key rule appear in Maryland’s Commercial Law at Maryland Code, Commercial Law, Section 21-106, and the related UETA provisions.

Federal overlay for interstate commerce

Federal ESIGN (15 U.S.C. § 7001) provides that electronic signatures and records have the same legal effect as paper. This federal law preempts inconsistent state laws, but it allows states to adopt UETA. Businesses operating across state lines should ensure processes meet both sets of requirements.

Practical safeguards

Enforceability often turns on audit trails, authentication and clear consent. Good vendor platforms capture IP addresses, timestamps and completion certificates. This can avoid litigation issues moving forward.

With proper consent, attribution and recordkeeping, e-signatures are as binding as ink in Maryland. Indeed, e-signatures are often more defensible thanks to digital audit data, especially when compared to unnotarized wet-ink signatures.