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Authentication Agreement

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AUTHENTICATION AGREEMENT

This Authentication Agreement ("Agreement") is entered into as of by and between Client Name: and Service Provider Name: .

WHEREAS

WHEREAS, Client requires authentication services for certain records, identities, or signatures and seeks to rely upon electronic or manual authentication processes to validate authenticity, provenance, or authority;

WHEREAS, Service Provider represents that it has the technical capability, operational controls, and personnel necessary to perform authentication services in accordance with the scope of work and the standards set forth in this Agreement;

WHEREAS, the parties desire to set forth the terms and conditions under which Service Provider will perform authentication services and Client will accept and pay for such services.

SCOPE OF SERVICES

Service Provider shall perform authentication services which may include identity verification, signature validation, chain-of-custody documentation, issuance of authentication statements, maintenance of audit logs, and secure transmission of authentication results to Client. Service Provider will perform services in a timely and professional manner and will maintain reasonable commercial standards for systems, controls, and personnel.

PAYMENT TERMS

Invoices are payable within the period set forth in the Payment Schedule. Overdue amounts shall accrue interest at a rate equal to or the maximum rate permitted by law, whichever is lower. Client shall be responsible for reasonable costs of collection, including attorneys' fees.

TERM AND TERMINATION

This Agreement shall commence on (the "Effective Date") and continue until unless earlier terminated in accordance with this Agreement.

Upon termination for any reason, Client shall pay Service Provider for services performed and expenses incurred through the effective date of termination. Sections that by their nature survive termination shall remain in effect, including confidentiality, indemnification, and limitation of liability provisions.

CONFIDENTIALITY

"Confidential Information" means all nonpublic information disclosed by one party to the other in connection with this Agreement, whether orally, in writing, or by electronic means, including identity data, authentication records, audit logs, methodologies, and pricing. Receiving party shall (i) use Confidential Information only for the purposes of performing under this Agreement, (ii) restrict disclosure to employees, contractors, or agents who have a need to know and are bound by confidentiality obligations no less protective than those herein, and (iii) employ reasonable administrative, physical, and technical safeguards to protect Confidential Information from unauthorized access, use, or disclosure.

REPRESENTATIONS, WARRANTIES, AND LIMITATION OF LIABILITY

Each party represents and warrants that it has the full power and authority to enter into this Agreement. Service Provider represents that it will perform services in a professional and workmanlike manner consistent with industry standards. EXCEPT FOR THE FOREGOING, SERVICES ARE PROVIDED "AS IS" AND SERVICE PROVIDER DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES. SERVICE PROVIDER'S AGGREGATE LIABILITY FOR DIRECT DAMAGES ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT SHALL NOT EXCEED AN AMOUNT EQUAL TO .

INDEMNIFICATION

Each party shall indemnify, defend, and hold harmless the other party and its officers, directors, employees, and agents from and against any third-party claims, liabilities, losses, and expenses (including reasonable attorneys' fees) arising from the indemnifying party's breach of this Agreement, gross negligence, or willful misconduct; provided that the indemnified party gives prompt written notice of any claim and cooperates in the defense.

DATA PROTECTION AND RECORDS

To the extent Service Provider processes personal data on behalf of Client in connection with authentication services, Service Provider shall implement and maintain reasonable technical and organizational measures to protect such data. Service Provider shall retain authentication records and audit logs for the retention period set forth below and shall make such records available to Client upon reasonable request for purposes of audit and dispute resolution.

NOTICES

All notices under this Agreement shall be in writing and delivered to the addresses set forth below or such other address as a party may designate by notice. Notices shall be deemed given upon personal delivery, three business days after deposit with a nationally recognized overnight carrier, or upon email transmission with confirmation of receipt when followed by one of the foregoing methods.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of without regard to its conflicts of law principles. The parties agree that exclusive venue for any dispute shall be the state or federal courts located in the chosen jurisdiction unless otherwise agreed in writing.

ENTIRE AGREEMENT

This Agreement, including all exhibits and attachments referenced herein, constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior and contemporaneous understandings, agreements, negotiations, and communications, whether written or oral. No amendment or modification shall be effective unless in writing and signed by duly authorized representatives of both parties.

Client:

By:

Date:

Service Provider:

By:

Date:

Enter text✕

What an Authentication Agreement Is and Why It Exists

An Authentication Agreement documents how parties will confirm identity and authorize signatures for a specific transaction or record. It defines acceptable authentication methods (email/SMS codes, knowledge-based authentication, certificate-based digital signatures), any notarization or witness requirements, and how audit data will be retained. In the United States these agreements operate within the ESIGN Act and state UETA frameworks and are commonly used to reduce signature disputes, clarify evidence of signer intent, and support downstream filing or regulatory requirements such as notary acknowledgement or record retention.

Why an Authentication Agreement Matters for Legal Certainty

Authentication Agreements set clear expectations about signer identity, reduce later challenges to signature validity, and document technical controls and retention. When executed in compliance with ESIGN (15 U.S.C. §7001) and applicable state UETA rules, they strengthen enforceability and provide a consistent audit trail for dispute resolution.

Why an Authentication Agreement Matters for Legal Certainty

Which Roles Commonly Use an Authentication Agreement

Typical users include any party who needs verified signatures and documented authentication steps before a transaction completes.

  • Real estate brokers and closing agents who require notarization and identity proofing for deeds and lease signings.
  • Healthcare administrators and providers that must document authentication to support HIPAA-compliant consent and record sharing.
  • Corporate legal and finance teams that need clear signer attribution and audit trails for contracts and regulatory filings.

The agreement is useful across industries whenever identity confirmation, evidence of intent, or specific retention requirements are needed.

Who Signs and Who Authorizes Authentication

Authorized Signer

A person with contractual authority (officer, agent, or named individual) who executes the agreement on behalf of a party. Ensure their title and authority are recorded; mismatched authority can invalidate commitments or require ratification.

Identity Verifier

The entity or person responsible for proving signer identity (notary, platform identity service, or compliance officer). Their method and evidence should be recorded in the agreement, including any ID checks, KBA results, or credential certificates.

Core Authentication Data to Record

Signer Name: Full legal name
Signer Contact: Email and phone
Auth Method: Email, SMS, KBA
Timestamp: Date/time stamp
IP Address: Captures origin
Document Hash: Tamper-evident digest

Consequences of Inadequate Authentication

Invalid Signature: Loss of enforceability
Regulatory Fines: Industry penalties
Tax Penalties: IRC §6721 fines possible
Contract Disputes: Rescission risk
Data Exposure: Privacy breaches
Operational Delay: Re-execution required

Common Preparation Errors to Avoid

  • Failing to specify the authentication level required for particular signers, which can lead to inconsistent verification and later disputes over identity.
  • Using vague signer identifiers (initials or nicknames) instead of full legal names that match government-issued IDs and tax records.
  • Neglecting to record consent to electronic transactions when consumer-facing obligations require a disclosure under ESIGN (15 U.S.C. §7001(c)).
  • Omitting retention and audit-trail instructions, leaving uncertainty about how long proof of authentication will be stored and who controls access.

Step-by-Step: Completing an Authentication Agreement

Follow these steps to prepare, authenticate, and record an Authentication Agreement in a compliant and auditable way.

  • 01
    Prepare Document: Identify parties, scope, and desired authentication methods.
  • 02
    Add Fields: Place signature, date, and identity fields for each signer.
  • 03
    Select Auth: Choose email/SMS/KBA/digital certificate options per signer.
  • 04
    Execute & Record: Send for signature, capture audit trail, store copy.

How Electronic Authentication Typically Works

Authentication for electronic signatures follows a recurring workflow that captures intent, identity, and a tamper-evident record.

  • Upload Document: Sender uploads the agreement to the signing platform.
  • Assign Fields: Add signature, initial, and date placeholders per signer.
  • Authenticate Signer: Signer confirms identity via selected method (email, SMS, KBA).
  • Complete & Archive: Signed document and audit trail are stored and distributed.

Essential Sections to Include in a Professional Authentication Agreement

A comprehensive Authentication Agreement should address identity methods, scope of authorised actions, evidence capture, retention, dispute resolution, and governing law to create a reliable legal record that supports signature enforceability.

Parties

Identify each party by full legal name, company affiliation, and capacity to bind the organization; include contact details and, if relevant, the authorized signer's title and authority limits.

Effective Date

Specify the effective date in MM/DD/YYYY format and state whether authentication actions taken before that date are covered by the agreement to avoid ambiguity.

Authentication Methods

List acceptable methods (email link, SMS code, knowledge-based authentication, PKI certificate, in-person notarization, RON) and any minimum verification steps required for high-risk transactions.

Evidence Capture

Describe the audit trail elements to be stored (timestamps, IP addresses, device info, KBA results, A/V recordings for RON) and who controls access to those records.

Retention & Access

State retention periods for signed records and audit data, procedures for producing records in litigation, and any secure storage or encryption requirements.

Governing Law

Declare the state law governing interpretation and enforcement (ESIGN preemption note as applicable) and any dispute resolution processes such as arbitration or venue selection.

Typical Online Configuration for Authentication Workflows

Set these workflow parameters when configuring an electronic signing process to match the agreement's authentication requirements.

Field Configuration
Authentication Method Email, SMS code, KBA, or certificate
Proofing Level Basic, Enhanced, or Notary/RON
Notarization Option In-person or RON audio-video
Retention Policy Secure storage duration and access controls

Technical and Integration Considerations

Confirm platform capabilities and integrations to ensure the chosen authentication methods and retention rules can be implemented and audited.

  • Formats Supported: PDF, DOCX, HTML, Excel
  • Integrations: Salesforce, NetSuite, Google Workspace
  • Security Standards: TLS 1.2/1.3, AES-256 at rest

Verify that your chosen platform can deliver required audit trails, optional RON workflows, BAAs for HIPAA, and the retention/export formats your organization needs.

Typical Timelines and Regulatory Deadlines to Consider

Authentication Agreements themselves rarely have filing deadlines, but associated filings and retention obligations create time-sensitive actions that must be tracked.

Provide on Request:

Authentication details are typically produced when requested by a counterparty or regulator.

IRS Record Retention:

Retain tax-related records for 3 years (IRC §6501(a)).

HIPAA Retention:

Keep health records for 6 years (45 CFR §164.530(j)).

I-9 Retention:

Retain for 3 years after hire or 1 year after termination, whichever is later (8 CFR §274a.2).

RON Recording:

Audio/video retention typically 5–10 years per state RON rules.

Key Processing Stages for an Authentication Agreement

These sequential milestones show the typical lifecycle from drafting to archival; keep records at each stage for auditability.

01

Draft and Review

Prepare the agreement and confirm authentication and retention clauses before distribution.

02

Authentication Execution

Signers complete identity verification and apply signatures via the selected method.

03

Notary or RON Step

If required, a notary or RON session verifies identity and produces an acknowledgement.

04

Archive and Produce

Store signed documents and audit trail according to retention rules and make them available on request.

How Electronic and Digital Signatures Differ for Authentication

Compare the general legal and technical distinctions to select the right authentication approach for your agreement.

Criteria Electronic Signature Digital Signature
Legal Status yes under esign/ueta yes under esign/ueta
Underlying Tech varied (images, clicks) pki certificate
Non-repudiation audit trail evidence strong cryptographic proof
Typical Use everyday transactions high-assurance or regulated records

Comparing eSignature Vendors for Authentication Workflows

Use this concise comparison of starting price and core delivery features when evaluating vendors; vendor-specific features may vary by plan and contract.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
Envelope Cap No cap 100 env/user/yr Varies Varies Varies

Frequently Asked Questions About Authentication Agreements

Answers to common questions on enforceability, notarization, authentication levels, and platform capabilities when executing Authentication Agreements electronically.


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