What Are the Requirements for an E-Contract?

26 Jan, 2024
Paresh @Boloforms
8 min read
What Are the Requirements for an E-Contract?

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In the 21st century, the transition to paperless documents has revolutionized contract management. A pivotal moment in this shift was marked by the enactment of the Electronic Signatures in Global and National Commerce Act (E-Sign Act) on June 30, 2000. This legislative move officially validated electronic contracts, placing them on par with their traditional paper counterparts. As we delve into the evolving landscape of contract legality, it's crucial to explore the specific requirements that govern e-contracts. Read on to gain insights into the essential elements that make an electronic contract legally binding.

What Is An E-Contract?

An e-contract, short for "electronic contract," represents a digital evolution in contract creation and distribution. Instead of traditional paper methods, these contracts are formulated and exchanged through digital channels such as email, computer programs, or document management software.

Crucially, for an e-contract to carry legal validity, it must adhere to The Uniform Computer Information Transactions Act (UCITA). This legal framework ensures that electronic contracts meet the necessary standards for enforceability. The fundamental components of a traditional contract, including offer, acceptance, capacity, and consideration, remain integral to the validity of e-contracts.

In the context of the expanding realm of e-commerce, businesses now have the opportunity to streamline processes, conserve resources, and reduce costs by embracing e-contracts in dealings with customers, vendors, and other entities. The paperless nature of these transactions not only fosters efficiency but has also proven particularly advantageous during times like the pandemic, where remote collaboration and digital document management have become increasingly essential.

What Are The Requirements For An E-Contract?

While e-contracts undoubtedly enhance convenience and efficiency in business operations, the meticulous drafting of these documents remains crucial. An electronic contract is bound by the same legal requisites as its traditional, paper-based counterpart.

The indispensable elements for ensuring the validity of any contract, electronic or otherwise, include:


The commencement of a contract involves one party presenting an offer, expressing the intent to exchange something of value for a counterpart's offering. This could range from a service fee to any other valuable consideration.


Central to contract validity is the concept of consideration—what each party gains from the contractual agreement. It's the reciprocal actions or promises that make the contract a mutually beneficial exchange.


Following consideration, the second party has the option to either accept, decline, or propose modifications to the initial offer. This step may involve a series of negotiations until both parties reach a consensus.


All involved parties must share the intention to create a valid and enforceable agreement. This element encompasses matters of consent and ensures that agreements are entered into willingly, without coercion.


Legal capacity is a prerequisite for all parties involved in signing a contract. For example, minors typically lack the legal capacity to enter into contracts.

To finalize an e-contract, digital signatures are imperative. These digital signatures can take various forms, such as letters, symbols, or marks, serving as clear indications of the parties' willingness to engage in a binding contract. When structuring an offer through a digital contract, it is crucial to articulate essential terms clearly, avoiding excessive legalese, and ensuring transparency in disclosing all rights and obligations. This approach establishes a foundation for a binding legal relationship upon acceptance of the offer.

The legality and validity of your e-signature are contingent upon two key factors:

Provable Signature

    • It must be demonstrable that you indeed signed the contract.
    • The signature should be a result of your willful and intentional agreement to enter into a legally binding relationship.

Security Measures

    • While some individuals opt for unconventional methods like cropping a picture of their handwritten signature and pasting it onto electronic documents, this approach lacks security.
    • Although not necessarily illegal, this method exposes vulnerabilities, as anyone can easily manipulate and paste a picture of a physical signature onto a digital document.

In essence, while diverse forms of e-signatures, including typed names, symbols, or marks, are legally acceptable, ensuring the security and authenticity of the signature is crucial for a robust and legally binding electronic agreement.

Meet The Requirements For An E-Contract Using BoloForms

Efficient contract management is crucial for businesses, and maintaining a repository of templates or utilizing a management system can greatly simplify the creation of legally binding e-contracts.

Enter BoloForms—a solution designed to streamline this process. With a built-in library of customizable templates catering to various business needs, BoloForms ensures that whether you're initiating a partnership, hiring employees, or establishing a service agreement, their software has you covered.

While BoloForms doesn't replace the expertise of a lawyer, it provides an easy-to-use document management system. This platform empowers you to create legally binding contracts efficiently, ensuring they adhere to the required format and transmission standards. In essence, BoloForms becomes a valuable tool in your arsenal for swift and reliable contract creation.

Service Agreement

BoloForms serves as a robust tool to meet the requirements for an e-contract through several key features:

1. International and Local Compliance

  • The software is inherently designed to comply with all international laws governing contracts.
  • Users can verify if an e-contract aligns with local laws, ensuring legal adherence.

2. Secure Transmission

  • Contracts are transmitted securely to involved parties via 256-bit encryption and AATl compliance.
  • Utilizing the safest browser for privacy further safeguards sensitive contract information during sharing, reducing the risk of unauthorized access or data breaches.

3. Encryption for Document Safety

  • Encryption or cryptography is employed to secure online document sharing.
  • This process 'scrambles' information during transmission, ensuring that only authorized users can view and edit the content using a decryption key.

4. Efficient Document Management

  • BoloForms facilitates easy location and real-time access to documents, optimizing the signing, tracking, and storage processes.
  • This not only saves time but also contributes to a paperless and streamlined approach to document management.

In essence, BoloForms not only ensures legal compliance but also prioritizes the security, privacy, and efficiency of the entire e-contract lifecycle, from creation to transmission and management.

Employment contract
Legal Templates

How to Create a Contract Online for Free with BoloForms

BoloForms stands out for its user-friendly approach, offering simplicity without sacrificing professionalism. The intuitive user interface makes document creation a breeze, ensuring that you can navigate the platform effortlessly.

Here's a quick guide on how to create a free contract with BoloForms:

1. Sign Up:

2. Navigate to 'Contract':

  • Click on 'contract' and explore a diverse selection of over 100+ templates, all vetted by legal experts. Choose the one that suits your needs.

3. Download the Document:

  • Once you've selected a template, download it in PDF format for easy editing.

4. Send It!:

  • Enter the necessary details, and swiftly send the contract digitally to all relevant parties within seconds.
  • Recipients will receive an email containing a link to open the contract and sign it electronically on any device or by using BoloForms Signature.

In essence, BoloForms's streamlined process empowers you to effortlessly create and distribute contracts, offering a user-friendly experience without compromising on the professional quality of your documents.


What are the advantages of using e-contracts?

Efficiency and Cost Savings:
The foremost advantage of e-contracts is the significant time and money saved. The elimination of hard copy processes reduces the need for physical storage and postage, allowing businesses to focus resources on more productive tasks.

Environmental Impact:
In alignment with growing environmental consciousness, e-contracts contribute to reducing workplace wastage, fostering a paperless approach that aligns with sustainable practices.

Pandemic Preparedness:
In the context of the ongoing pandemic, digital contracts enable businesses to maintain operational continuity while ensuring the safety of stakeholders, eliminating the need for physical proximity during document exchanges.

Real-time Accessibility and Transparency:
Utilizing cloud storage, all involved parties can promptly access and review documents in real time. The transparency of the digital platform allows for tracking edits, indicating when modifications are made and identifying the contributors. This fosters a collaborative and accountable environment.

Enhanced Security:
Digital security protocols provide a safeguard against potential breaches, ensuring that contracts remain protected from unauthorized access or cyber threats.

Are e-contracts legally binding?

Yes, electronic contracts are legally binding and recognized under several federal and international laws. Key legislations include the Electronic Signatures in Global and National Commerce Act (ESIGN) and the Uniform Electronic Transactions Act (UETA). Additionally, the Uniform Commercial Code (UCC), governing the sale of goods in the United States, acknowledges the validity of electronic contracts. To meet legal requirements, electronic transactions must comply with the Statute of Frauds under UETA, particularly for the sale of goods exceeding $500.


In the contemporary landscape of contract management, the advent of paperless documents, propelled by legislative milestones such as the Electronic Signatures in Global and National Commerce Act (E-Sign Act), has ushered in a transformative era. E-contracts, or electronic contracts, stand at the forefront of this revolution, representing a digital evolution in the creation and distribution of contractual agreements.

The legal landscape governing e-contracts is anchored in frameworks such as The Uniform Computer Information Transactions Act (UCITA), ensuring that electronic contracts adhere to rigorous standards for enforceability. Crucially, the fundamental components of traditional contracts, including offer, acceptance, capacity, and consideration, remain integral to the validity of e-contracts.

Businesses, particularly in the realm of e-commerce, are leveraging the advantages of e-contracts to streamline processes, conserve resources, and reduce costs. The paperless nature of these transactions not only enhances efficiency but has proven especially advantageous during unprecedented times, such as the ongoing pandemic, where remote collaboration and digital document management have become imperative.

To ensure the validity of e-contracts, meticulous attention to the same legal requisites as traditional contracts is paramount. This includes elements such as a clear offer, consideration, acceptance, shared intention, and legal capacity. The inclusion of digital signatures, in various forms, serves as a pivotal indication of the parties' commitment to a binding agreement.

The legality and validity of e-signatures, a crucial aspect of e-contracts, hinge on demonstrable signatures and robust security measures. While various forms of e-signatures are legally acceptable, ensuring security and authenticity is imperative for a strong and legally binding electronic agreement.

Enter BoloForms, a solution designed to streamline contract management. With a user-friendly interface and a repository of customizable templates, BoloForms facilitates the creation of legally binding e-contracts. The platform ensures international and local compliance, secure transmission, encryption for document safety, and efficient document management.

In essence, as businesses navigate the dynamic landscape of contract management, embracing tools like BoloForms becomes instrumental in ensuring legal compliance, security, and efficiency throughout the entire lifecycle of e-contracts—from creation to transmission and management. The advantages of e-contracts, including efficiency, cost savings, environmental impact, pandemic preparedness, real-time accessibility, transparency, and enhanced security, further underscore their pivotal role in modern business operations.

In conclusion, the era of e-contracts is here to stay, offering a seamless and secure alternative to traditional paper-based agreements, with technology-driven solutions like BoloForms leading the way.

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