E-Mail Sufficient to Bind Parties to Arbitrate
E-mails may be used to form an enforecable contract to arbititrate under a holding by the United States Court of Appeals for the First Circuit.
The Court ruled the Electronic Signatures in Global and National Commerce Act, known as the "E-Sign Act," permits electronic writings to form a legally binding contract and that is sufficient to meet the Federal Arbitration Act's condition that arbitration agreements be put on paper. The Court ruled, however, that no binding arbitration agreement was formed in the case because the company sent out a mass e-mail to its employees and did not requre them to accept the arbitration agreement by return e-mail or make it clear continuing to work for the company would be deemed acceptance.