Legal Question in Business Law in California

Re: Is a fax a legal document?

A fax is a "writing" and it is just as valid and admissible in court as is any other writing. There are various "foundational" requirements that have to be met in order to have any writing admitted as evidence in court, but that's another story..

Re: Is a fax a legal document?

I'm not sure what you mean when you say that a fax is not a legal document. Lawyers reach agreements all the time and rely on signatures sent via fax. I was personally involved with a case once where my client loaned $50,000 based on signed promissory note sent via fax. The defendant tried to raise the argument that he signed a fax copy of the promissory and not the "original". He lost and my client want a judgment for the money and all of his attorney's fees.

There are even laws allow service of papers in a lawsuit by fax if the other parties agree. So in the proper context, a fax can be used to create a legally binding document.

Re: Is a fax a legal document?

In a case called Hofer v. Young, 38 Cal. App. 4th 52 (1995), the California Court of Appeal held that an offer to compromise in a case was accepted by fax, and therefore the fax was just as good as sending a letter. "Defendants elected to communicate their assent by fax, a reasonable and increasingly common means of modern communication. There is no dispute the acceptance was received by plaintiff before it was revoked. The letter of revocation itself expressly stated that plaintiff 'rejects the faxed acceptance faxed February 22, 1994' [the foundational requirement to which Mr. Stone refers.] As a result, according to general principles of contract law, the statutory offer to compromise was accepted."

Re: Is a fax a legal document?

Facsimiles (or "faxes") can be used for almost any transaction or purpose. I believe original signatures are still required on deeds, wills and certain documents to be filed with the Secretary of State.

California has several laws covering this area generally. One of particular interest here is the Electronic Transactions Act, Civil Code sections 1633.1 et seq., which basically enables e-commerce including "signatures" sent by e-mail.

So, enforcing deals set up by exchange of FAXes is old hat.