What legal effect does an electronic signature have under the UCC?

An electronic signature is recognized under the Uniform Commercial Code (UCC) as valid and enforceable, just like a traditional handwritten signature. This acceptance is important as it aligns with the overarching principle of facilitating commerce through modern means of agreement. An electronic signature carries the same legal weight as a physical signature, so long as it reflects the intent of the parties involved in the transaction.

The UCC and related laws establish that electronic signatures can confirm agreements for contracts, including those subject to the UCC, ensuring that electronic commerce can function effectively. This provision allows parties to conduct business efficiently without being hindered by outdated notions of physical signatures. Thus, the legal effect of an electronic signature under the UCC is that it holds the same validity and enforceability as a conventional signature when validly executed.