The University of Tennessee, Knoxville

Tennessee County Municipal Advisory Service

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Recognition of Electronic Contracting

Reference Number: MTAS-1695
Tennessee Code Annotated
Reviewed Date: August 27, 2014
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47-10-107. Legal recognition of electronic records, electronic signatures and electronic contracts
(a) A record or signature may not be denied legal effect or enforceability solely because it is in electronic form.

(b) A contract may not be denied legal effect or enforceability solely because an electronic record was used in its formation.

(c) If a law requires a record to be in writing, an electronic record satisfies the law.

(d) If a law requires a signature, an electronic signature satisfies the law.

Although this section has uniform application when two or more entities participate in an e-business transaction, specific attention is focused on Section 3, Illustration 2, in the COMMENTS TO OFFICIAL TEXT.

Illustration 2: A sends the following e-mail to B: “I hereby offer to buy 100 widgets for $1,000, delivery next Tuesday. /s/ A.” B responds with the following e-mail: “I accept your offer to purchase 100 widgets for $1,000, delivery next Tuesday. /s/ B.” In this case the records satisfy the requirements of UCC § 2-201(1) [47-2-201(1)]. The transaction may not be denied legal effect solely because there is not a pen and ink “writing” or “signature.”

Responsible: