electronic signature that has generated the most business and technical efforts, as well as A signature, whether electronic or on paper, is first and foremost a symbol that signifies intent Thus, the definition of"signed"in the Uniform Commercial Code includes"any symbol"so long as it is"executed or adopted by a party with present intention to authenticate writing. "The primary focus, of course, is on the intention to authenticate, which distinguishes a signature from an autograph. Yet, the nature of that intent will vary with the transaction, and in most cases can be determined only by looking at the context in which the signature was made. A signature may, for example, signify an intent to be bound to the terms of the contract, the approval of a subordinate's request for funding of a project, confirmation that a signer has read and reviewed the contents of a memo, an indication that the signer was the author of a document, or merely that the contents of a document have been shown to the signer and that he or she has had an opportunity to review them 2. Purposes and Functions of Digital signature In addition to evidencing a person's intent, a signature can also serve two secondary purposes rst,a signature may be used to identify the person signing Second, a signature may serve as some evidence of the integrity of a document, such as when parties sign a lengthy contract or final page and also initial all preceding pages to guard against alterations in the integrity of the document through a substitution of pages For electronic transactions, these secondary signature functions of identity and integrity can be key. Especially to the extent that we automate electronic transactions, and conduct them over significant distances using easily altered digital technology, the need for a way to ensure the identity of the sender and the integrity of the document becomes pivotal Unlike the world of paper-based commerce, where the requirement of a signed writing most frequently serves the function of showing that an already identified person made a particular promise, in the e-commerce world, a requirement of an authenticated electronic message serves not only this function, but the more fundamental function of identifying the person making the promise contained in the message in the first place. This additional function is critical in e-commerce because there are few other methods of establishing the source of an electronic Thus, while handwritten signatures in most cases serve merely to indicate the signers intent, signatures in an electronic environment typically serve three critical purposes for the parties engaged in an e-commerce transaction -i.e, to identify the sender, to indicate the senders intent (e. g, to be bound by the terms of a contract), and to ensure the integrity of the document signed 12.5.2 The Fundamental Legal Issues Raised by E-Commerce Three fundamental legal issues arise when parties to a transaction use electronic records to replace paper, employ an electronic medium as the mode of communication, and use electronic signatures to authenticate their transactions (1) Is it legal? Both federal and state law contain many requirements that transactions be documented in"writing"and be"signed. Many are concerned that this requires ink on paper and, thus, that electronic communications do not meet appropriate legal requirements for writing and signature and will not be enforceable (2) Can I trust the message? Recipients of electronic messages must have some basis for trusting the message(from a legal perspective), so that they can act in reliance upon the message, often in real time, and without the need for out-of-band verification. Achieving the key goals of e-commerce(including speed, efficiency, and economy) requires that recipients of electronic messages be willing to act in reliance on messages received(e.g, ship product, transfer funds, enter into binding contractual commitments, change position in reliance on messages), and to do so promptly and in many cases automatically. Yet, the indicia of reliability that usually accompany paper-based communications(such as a paper document signed with ink signatures and delivered by trusted third parties such as the U.s. Postal Service)are missing in electronic transactions. moreover. the ease with which digital documents can be altered without detection increases the risk of fraud for electronic transaction (3) What are the rules of conduct? As with all legal transactions, the parties should know the rules of the game. For example, what is the liability of a certification authority orelectronic signature that has generated the most business and technical efforts, as well as legislative responses. A signature, whether electronic or on paper, is first and foremost a symbol that signifies intent. Thus, the definition of “signed” in the Uniform Commercial Code includes “any symbol” so long as it is “executed or adopted by a party with present intention to authenticate writing.” The primary focus, of course, is on the “intention to authenticate,” which distinguishes a signature from an autograph. Yet, the nature of that intent will vary with the transaction, and in most cases can be determined only by looking at the context in which the signature was made. A signature may, for example, signify an intent to be bound to the terms of the contract, the approval of a subordinate’s request for funding of a project, confirmation that a signer has read and reviewed the contents of a memo, an indication that the signer was the author of a document, or merely that the contents of a document have been shown to the signer and that he or she has had an opportunity to review them. 2. Purposes and Functions of Digital signature In addition to evidencing a person’s intent, a signature can also serve two secondary purposes. First, a signature may be used to identify the person signing. Second, a signature may serve as some evidence of the integrity of a document, such as when parties sign a lengthy contract on the final page and also initial all preceding pages to guard against alterations in the integrity of the document through a substitution of pages. For electronic transactions, these secondary signature functions of identity and integrity can be key. Especially to the extent that we automate electronic transactions, and conduct them over significant distances using easily altered digital technology, the need for a way to ensure the identity of the sender and the integrity of the document becomes pivotal: Unlike the world of paper-based commerce, where the requirement of a signed writing most frequently serves the function of showing that an already identified person made a particular promise, in the e-commerce world, a requirement of an authenticated electronic message serves not only this function, but the more fundamental function of identifying the person making the promise contained in the message in the first place. This additional function is critical in e-commerce because there are few other methods of establishing the source of an electronic message. Thus, while handwritten signatures in most cases serve merely to indicate the signer’s intent, signatures in an electronic environment typically serve three critical purposes for the parties engaged in an e-commerce transaction – i.e., to identify the sender, to indicate the sender’s intent (e.g., to be bound by the terms of a contract), and to ensure the integrity of the document signed. 12.5.2 The Fundamental Legal Issues Raised by E-Commerce Three fundamental legal issues arise when parties to a transaction use electronic records to replace paper, employ an electronic medium as the mode of communication, and use electronic signatures to authenticate their transactions: （1） Is it legal? Both federal and state law contain many requirements that transactions be documented in “writing” and be “signed.” Many are concerned that this requires ink on paper and, thus, that electronic communications do not meet appropriate legal requirements for writing and signature and will not be enforceable. （2） Can I trust the message? Recipients of electronic messages must have some basis for trusting the message (from a legal perspective), so that they can act in reliance upon the message, often in real time, and without the need for out-of-band verification. Achieving the key goals of e-commerce (including speed, efficiency, and economy) requires that recipients of electronic messages be willing to act in reliance on messages received (e.g., ship product, transfer funds, enter into binding contractual commitments, change position in reliance on messages), and to do so promptly and in many cases automatically. Yet, the indicia of reliability that usually accompany paper-based communications (such as a paper document signed with ink signatures and delivered by trusted third parties such as the U.S. Postal Service) are missing in electronic transactions. Moreover, the ease with which digital documents can be altered without detection increases the risk of fraud for electronic transactions. （3） What are the rules of conduct? As with all legal transactions, the parties should know the rules of the game. For example, what is the liability of a certification authority or a