Uniform Electronic Transactions Act

Division 3, Part 2, Title 2.5 of the California Civil Code deals with electronic transactions. Section 1633.1 provides that this title is the Uniform Electronic Transactions Act.

Section 1633.2 defines the following terms: “agreement,” “automated transaction,” “computer program,” “contract,” “electronic,” “electronic agent,” “electronic record,” “electronic signature,” “governmental agency,” “information,” “information,” “information processing system,” “person,” “record,” “security procedure,” and “transaction.”

Section 1633.3 states that this title applies to electronic records and electronic signatures relating to a transaction. This title does not apply to transactions subject to any of the specified laws. This title applies to an electronic record or electronic signature otherwise excluded from the application of this title when used for a transaction subject to a law other than those specified.

Section 1633.4 explains that this title applies to any electronic record or electronic signature created, generated, sent, communicated, received, or stored.

Section 1633.5 sets forth that this title 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. This title applies only to a transaction between parties each of which has agreed to conduct the transaction by electronic means.

Whether the parties agree to conduct a transaction by electronic means is determined from the context and surrounding circumstances, including the parties’ conduct. Except for a separate and optional agreement the primary purpose of which is to authorize a transaction to be conducted by electronic means, an agreement to conduct a transaction by electronic means may not be contained in a standard form contract that is not an electronic record.

An agreement in a standard form contract may not be conditioned upon an agreement to conduct transactions by electronic means. An agreement to conduct a transaction by electronic means may not be inferred solely from the fact that a party has used electronic means to pay an account or register a purchase or warranty. This subdivision may not be varied by agreement.

Section 1633.6 directs that this title is to be construed and applied to three specified goals.

Section 1633.7 provides that a record or signature may not be denied legal effect or enforceability solely because it is in electronic form. A contract may not be denied legal effect or enforceability solely because an electronic record was used in its formation. If a law requires a record to be in writing, an electronic record satisfies the law. If a law requires a signature, an electronic signature satisfies the law.

Section 1633.8 explains that, if the parties have agreed to conduct a transaction by electronic means and a law requires a person to provide, send, or deliver information in writing to another person, that requirement is satisfied if the information is provided, sent, or delivered, as the case may be, in an electronic record capable of retention by the recipient at the time of receipt. An electronic record is not capable of retention by the recipient if the sender or its information processing system inhibits the ability of the recipient to print or store the electronic record.

Section 1633.9 states that an electronic record or electronic signature is attributable to a person if it was the act of the person. The act of the person may be shown in any manner, including a showing of the efficacy of any security procedure applied to determine the person to which the electronic record or electronic signature was attributable.

Section 1633.10 provides that, if a change or error in an electronic record occurs in a transmission between parties to a transaction, the five specified rules apply.

Section 1633.11 states that, if a law requires that a signature be notarized, the requirement is satisfied with respect to an electronic signature if an electronic record includes the electronic signature of a notary public together with all other information required to be included in a notarization by other applicable law.

Section 1633.12 says that, if a law requires that a record be retained, the requirement is satisfied by retaining an electronic record of the information in the record, if the electronic record reflects accurately the information set forth in the record at the time it was first generated in its final form as an electronic record or otherwise, and the electronic record remains accessible for later reference.

Section 1633.13 provides that in a proceeding, evidence of a record or signature may not be excluded solely because it is in electronic form.

Section 1633.14 specifies that, in an automated transaction, the two specified rules apply.

Section 1633.15 says that, unless the sender and the recipient agree to a different method of sending that is reasonable under the circumstances, an electronic record is sent when the information is addressed properly or otherwise directed properly to the recipient and either enters an information processing system outside the control of the sender or of a person that sent the electronic record on behalf of the sender, or enters a region of an information processing system that is under the control of the recipient.

Section 1633.16 states that, if a law other than this title requires that a notice of the right to cancel be provided or sent, an electronic record may not substitute for a writing under that other law unless, in addition to satisfying the requirements of that other law and this title, the notice of cancellation may be returned by electronic means. This section may not be varied by agreement.

Section 1633.17 specifies that no state agency, board, or commission may require, prohibit, or regulate the use of an electronic signature in a transaction in which the agency, board, or commission is not a party unless a law other than this title expressly authorizes the requirement, prohibition, or regulation.