Consent to electronic delivery: Overview, definition and example
What is consent to electronic delivery?
Consent to electronic delivery refers to an agreement by an individual or entity to receive documents, notices, or other communications through electronic means, such as email, websites, or other digital platforms, rather than receiving them in physical or paper form. This consent is often required in business, legal, and contractual settings where the recipient must explicitly agree to receive documents electronically, acknowledging that they are comfortable with digital delivery methods.
For example, a customer might consent to receiving their bank statements via email instead of receiving a paper copy in the mail.
Why is consent to electronic delivery important?
Consent to electronic delivery is important because it establishes the legal validity of using digital communication for important notices, agreements, and documents. In many jurisdictions, laws such as the Electronic Signatures in Global and National Commerce (ESIGN) Act in the United States require that individuals explicitly agree to receive certain documents electronically. This helps ensure that the recipient is aware of how the information will be delivered and that they can access it appropriately.
For businesses, obtaining consent to electronic delivery is crucial to comply with legal requirements and reduce costs associated with printing, mailing, and storing paper documents. For consumers, it provides an efficient and environmentally friendly option for receiving information in a format they can access quickly and easily.
Understanding consent to electronic delivery through an example
Imagine a software company offering a new product. As part of the sales process, the company provides the customer with a contract and other documents through an online portal. The customer must explicitly consent to receive the documents electronically by checking a box that says, “I agree to receive all communications electronically.” Once the customer agrees, they can access and review the documents online.
In another example, an employee agrees to receive their pay stubs and tax documents electronically through their employer’s payroll system. By consenting to electronic delivery, the employee acknowledges they will no longer receive paper copies of these documents and will need to access them through the company’s online system.
An example of a consent to electronic delivery clause
Here’s how a consent to electronic delivery clause might appear in a contract or agreement:
“By signing this Agreement, the Parties consent to the electronic delivery of all notices, documents, and communications related to this Agreement, including but not limited to invoices, statements, and contracts. The Parties agree that such electronic delivery will be deemed sufficient notice and that they have the technical means to access, view, and store these electronic documents.”
Conclusion
Consent to electronic delivery is an essential aspect of modern business and legal practices, ensuring that documents and communications can be delivered digitally in a legally recognized manner. Obtaining explicit consent from the recipient ensures that both parties are aware of and agree to the use of electronic means for document exchange. It offers businesses an efficient way to reduce paper use and costs, while providing individuals and organizations with faster and more accessible communication methods.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.