Consent to Do Business Electronically: Legal Rules & Guidelines

The Requirement for Mutual Agreement in Electronic Commerce

Neither federal nor state law compels any individual or business to use electronic signatures against their will. Electronic contracting relies fundamentally on party autonomy: all participating parties must consent to use electronic records.

In business-to-business (B2B) transactions, consent may often be inferred from the context and conduct of the parties (such as negotiating contract terms via email and clicking an electronic signing link).

In consumer transactions, however, the ESIGN Act mandates specific consumer consent provisions: consumers must receive clear disclosures of their right to receive paper records, the scope of consent, and hardware/software requirements, and must affirmatively consent.

• Mandated under ESIGN Act § 101(c) for consumer transactions and UETA § 5
• Signers must be informed of their right to receive paper documents
• Disclosures outline hardware and software requirements to access files
• SignCEO presents standard electronic consent terms prior to document execution

Automated Consent Capture in SignCEO

When a recipient opens an agreement in SignCEO, they are presented with a clear consent notice. Proceeding with the signing process confirms their acceptance to conduct business electronically, and this consent is logged in the permanent audit trail.