What is the principle that allows for the use of electronic records and signatures in contracts?

The principle that allows for the use of electronic records and signatures in contracts is primarily established by the Electronic Signatures in Global and National Commerce Act (ESIGN Act). This federal law was enacted to facilitate and promote the use of electronic records and signatures in commercial transactions across the United States. It ensures that contracts and signatures can be considered legally binding when executed electronically, provided that both parties to the transaction have consented to do business electronically.

The ESIGN Act reinforces the validity of electronic signatures, making them equivalent to traditional handwritten signatures in terms of enforceability. It sets out requirements for electronic records to be as accessible and understandable as traditional paper records, thus ensuring transparency and consumer protection in electronic commerce.

In contrast, while other acts like the Digital Commerce Act and the Uniform Electronic Transactions Act also contain similar provisions regarding electronic transactions, the ESIGN Act specifically defines the legal standing of electronic signatures and records on a national level, which is why it is the most relevant and correct answer in this context.