U.S. Senate Passes Electronic Signatures Bill
The
United States Senate has passed a bill that recognises the
legality of contracts signed electronically. The bill creates
a minimum standard for electronic signatures, which it is expected
will be supplemented by State legislation. While the Bill is similar
to one passed by Congress on 9 November, there are a number of
differences that will need to be resolved before the bill(s) can
become law. The main difference between them is that the bill
passed by Congress also recognises the legality of electronic
records - a measure that has been fiercely opposed by consumer
groups and the Democrats. However,
the two bills are more consistent on the legality of electronic
signatures. "This bill assures that a company will be able to
rely on an electronic contract and that another party will not
be able to escape their contractual obligations simply because
the contract was signed electronically," said Republican Senator
Spencer Abraham, who sponsored the bill. "E-commerce
between businesses has grown to an estimated $64.8 billion
for 1999," Abraham said. "Ten million customers shopped for some
product using the Internet in 1998 alone. And 5.3 million households
had access to financial transactions like electronic banking and
stock trading by the end of 1999." .
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