🇺🇸 United States

How contracts work in California

California is where much of the US tech and creative industry contracts. The federal ESIGN Act applies here; California's own statutes are still waiting for verification against leginfo.legislature.ca.gov, so they are marked pending below.

Are electronic signatures valid in California?

Federally, ESIGN says a contract or signature may not be denied legal effect solely because it is electronic. California has also adopted its own version of UETA, which we have not yet verified on the official site.

  • Under the federal ESIGN Act, a signature, contract or other record relating to a transaction in interstate or foreign commerce may not be denied legal effect, validity or enforceability solely because it is in electronic form.

    Source: Electronic Signatures in Global and National Commerce Act, 15 U.S.C. 7001(a)Checked 7 October 2026Pending lawyer review

  • Pending verificationCalifornia has enacted the Uniform Electronic Transactions Act (Civil Code section 1633.1 onwards).

    To check: California Civil Code, section 1633.7. Not yet confirmed on the official page, so not relied on here.

Which law and courts does a contract name?

US contracts commonly name the law of one state, for example "the laws of the State of California", and the state or federal courts where disputes will be heard. Contract law in the US is mostly state law, so the choice of state matters more than the country.

General explanation; no statute cited.

When does a document need a deed or a witness?

US commercial contracts rarely use deeds. Witnessing and notarisation usually matter for real estate and some specific documents, not for services contracts.

General explanation; no statute cited.

What can't be contracted out of?

California restricts contracts that restrain someone from a lawful profession, trade or business. This matters for contractor and employment paperwork, but we have not yet verified the current text on the official site, and we do not comment on enforceability.

  • Pending verificationCalifornia Business and Professions Code section 16600 makes contracts that restrain anyone from a lawful profession, trade or business void, subject to listed exceptions.

    To check: California Business and Professions Code, section 16600. Not yet confirmed on the official page, so not relied on here.

How long do you have to bring a claim?

We have not yet published notes on time limits for contract claims in California here. We only publish a rule once we have read it on the official source, and this one is still waiting for that check.

General explanation; no statute cited.

What a governing-law clause for California looks like

This agreement is governed by the laws of the State of California. The parties submit to the exclusive jurisdiction of the state and federal courts located in the State of California.

Draft a contract under California law

Free for the other side

Lex drafts it in Plain English beside the legal wording. Share one link; both sides agree and sign.

Templates for California

No published templates for California yet. Lex can still draft under this law from any template.

Frequently asked questions

Are e-signatures valid in California?

The federal ESIGN Act (15 U.S.C. 7001(a)) says a signature or contract may not be denied legal effect solely because it is electronic. California's own UETA is pending verification on this page.

Does California law affect contractor agreements?

Yes, in several ways, including worker classification and restraint-of-trade rules. Those statutes are pending verification here, and classification depends on the facts of each arrangement.

Is a non-compete in a California contract enforceable?

We do not answer enforceability questions; they depend on the facts and are a matter for legal advice.

Related