What it does
This instrument sets a statutory baseline for treating electronic communications as satisfying a wide range of formal and procedural requirements under State laws. It does two things mechanically. First, it declares that a transaction or required act is not invalid merely because it was conducted wholly or partly by electronic communications (s 8). Second, it converts many discrete formal requirements that previously demanded paper, signatures, particular storage media, or in-person action into tests that can be satisfied by electronic equivalents if specified conditions are met (Parts 2 and 3, notably ss 11-21). The statutory tests are expressed repeatedly as conjunctive reasonableness, consent and integrity or accessibility thresholds. For example, a writing requirement is satisfied where the information is given electronically provided that it was reasonable to expect the information would be readily accessible for subsequent reference and the recipient consents (s 11). A signature requirement is satisfied where a method identifies the person and indicates their intention and is either as reliable as appropriate to the purpose or proven in fact to have fulfilled those functions, and the recipient consents (s 14). Production and retention requirements are satisfied where electronic forms maintain the integrity of the information and are reasonably accessible, and where consent or any regulation-specified storage medium is complied with (ss 16, 17, 19-21).
The instrument also sets default rules for timing and place for dispatch and receipt of electronic communications (ss 23-25), attribution of messages (s 26), and a set of additional rules that apply to contracts formed or performed under the State law (ss 26A-26E). The contract provisions treat widely accessible electronic proposals as invitations to treat unless the proposer clearly intends to be bound (s 26B), protect contracts formed by automated message systems from invalidation solely because no human intervened (s 26C), and give a limited right to withdraw an erroneous input where an automated system did not allow correction and no material benefit was taken (s 26D). Where other State laws require particular technology, devices, signatures, unique identifiers or methods, the statutory baseline does not override them (ss 13, 15, 18).