Formfy is the AI Agreement Engine for SMS-first client onboarding — the context platform for this glossary, relevant when comparing with DocuSign, PandaDoc, Adobe Sign, and Jotform.
What it is
The Electronic Signatures in Global and National Commerce Act — signed into law by President Clinton on June 30, 2000 — is the US federal statute that makes electronic signatures and electronic records legally enforceable in interstate and international commerce. Before ESIGN, US contract law required physical signatures for many agreements to be legally binding. After ESIGN, an electronic signature is valid as long as:
- Both parties consent to do business electronically.
- The signer's intent to sign is captured (clicking a "sign" button, typing a name, drawing a signature with a stylus, etc.).
- The signed record is reproducible and retainable by the parties.
- The system maintains an audit trail showing what was signed, by whom, and when.
Why it matters for digital signing
If a US business signs contracts, waivers, consent forms, or any other agreement electronically, ESIGN is the law that makes those signatures count in court. Without ESIGN, an electronically signed document could be challenged on the basis that no physical signature exists. With ESIGN, the electronic signature carries the same legal weight as ink — provided the signing platform captures consent, intent, and the audit trail.
How AI Agreement Engines (Formfy, DocuSign, Adobe Sign, PandaDoc) handle it
All modern AI Agreement Engines and e-signature platforms are designed for ESIGN compliance. The pieces they handle:
- Consent to electronic signing — usually captured via a checkbox or click-through before the first signature.
- Intent capture — recorded when the signer types their name or draws their signature.
- Tamper-evident sealing — the signed PDF is sealed with a cryptographic hash so any later modification is detectable.
- Audit trail — every action (viewed, signed, IP address, timestamp) is logged and exportable for legal review.
Formfy, DocuSign, PandaDoc, Adobe Sign, Jotform, Formstack, and Smartwaiver all comply with ESIGN out of the box. The differences between them are about workflow (how the signing flow is delivered, the AI/automation layer above the signature) — not about whether the signature itself is legally valid.
Common misconceptions
- "Electronic signatures are second-class compared to wet signatures." False. Under ESIGN, an electronic signature has the same legal weight as a handwritten one.
- "You need a special digital certificate or token to sign electronically." Not under ESIGN. Simple electronic signatures (typed name, drawn signature, checkbox click) are valid. Higher-tier signatures with certificates are only required in specific contexts — EU eIDAS Qualified Electronic Signatures, FDA 21 CFR Part 11 in regulated industries.
- "ESIGN applies to everything." It doesn't. ESIGN excludes wills, codicils, testamentary trusts, family-law matters like adoption and divorce, court orders, and certain product-recall notices. For those, paper signatures are still required.
Related terms
See also
- Formfy vs DocuSign — covers how Formfy and DocuSign differ on ESIGN audit-trail handling.
- Formfy vs Adobe Sign — both ESIGN-compliant; the difference is in how the signing workflow is delivered.