Electronic Transactions Can Be Legally Valid

By: Scott J. Hedlund

In 2001, the Legislature adopted Louisiana Revised Statute 9:2601 et.seq., the Uniform Electronic Transactions Act.  This act addresses how the law views information, documents and signatures transmitted in electronic format.  In short, the Act recognizes the validity of electronic records, signature and contracts. As stated in LA R.S. 9:2607:

A. A record or signature may not be denied legal effect or enforceability solely because it is in electronic form.

B. A contract may not be denied legal effect or enforceability solely because an electronic record was used in its formation.

C. If a law requires a record to be in writing, an electronic record satisfies the law.

D. If a law requires a signature, an electronic signature satisfies the law.

The statute goes on to require that for recognition of contracts and signatures to apply between parties, they must agree to conduct transactions by electronic means.  This agreement can be determined by the "context and surrounding circumstances," but can also be established in advance by the parties.  See LA R.S. 9:2605:

A. This Chapter does not require a record or signature to be created, generated, sent, communicated, received, stored, or otherwise processed or used by electronic means or in electronic form.

B. (1) This Chapter applies only to transactions between parties, each of which has agreed to conduct transactions by electronic means.
     (2) The context and surrounding circumstances, including the conduct of the parties, shall determine whether the parties have agreed to conduct a transaction by electronic means.

C. (1) A party that agrees to conduct a transaction by electronic means may refuse to conduct other transactions by electronic means.
     (2) The right granted by this Subsection may not be waived by agreement.

D. (1) Except as otherwise provided in this Chapter, the effect of any of its provisions may be varied by agreement.

     (2) The presence in provisions of this Chapter of the words "unless otherwise agreed," or words of similar import, does not imply that the effect of other provisions may not be varied by agreement.

E. Whether an electronic record or electronic signature has legal consequences is determined by this Chapter and other applicable law.

The Uniform Electronic Transactions Act also addresses when an electronic record is deemed to have been sent, and when it is deemed to have been received.  This may be important in cases where offer and acceptance of a contract, or the timing of certain actions, are in dispute.  Other provisions of this statute also address its relation to other laws, retention of records and admissibility of electronic records as evidence in a proceeding.

Written for The Legal Blueprint, 2009, Issue 1.