Scope of Authority
Describe specific acts the agent may perform (e.g., negotiate contracts, sign purchase orders) and list any expressly excluded powers to prevent unintended delegation.
A clear agency contract reduces legal uncertainty by documenting the agent's authority, limits liability, and sets payment and termination terms, supporting enforceability and operational efficiency.
Typical creators and signers include business owners, in-house counsel, and designated agents who need formal authority to act.
Use this document where delegation of commercial authority must be documented, tracked, and enforceable under applicable law.
A business owner or corporate officer who grants authority in defined areas; responsible for specifying limits, approving compensation, and retaining ultimate accountability for third-party obligations arising from the agent's actions.
An individual or entity appointed to perform tasks such as negotiating contracts, signing documents, or managing transactions within the contract scope; expected to act in the principal's best interests and follow any reporting or recordkeeping requirements.
Describe specific acts the agent may perform (e.g., negotiate contracts, sign purchase orders) and list any expressly excluded powers to prevent unintended delegation.
Specify the effective date, end date, and renewal mechanics; include conditions for early termination and any notice periods required for revocation.
State payment amounts, timing, reimbursable expenses, invoicing procedures, and any performance-based fees or holdbacks to align incentives and prevent disputes.
Set required standards of performance, reporting obligations, recordkeeping, and a duty of loyalty and care where applicable.
Include confidentiality obligations and, where regulated data is involved, specific privacy addenda (HIPAA, FERPA) or technical controls.
Outline termination triggers, post-termination duties, and indemnity or limitation of liability provisions to manage post-contract exposure.
| Field | Configuration |
|---|---|
| Authentication | Email link or SMS one-time code; use stronger KBA if high risk |
| Signature Order | Specify sequential or parallel signing depending on approvals |
| Conditional Fields | Use conditional fields for variable scopes or optional clauses |
| Audit Trail | Enable timestamps, IP capture, and completed PDF with certificate |
Ensure the chosen platform supports required authentication, integrations, and export formats before sending the contract.
Enter MM/DD/YYYY to mark when authority begins and obligations start
Observe any contract-specified notice period before revocation takes effect
Deliver written revocation to agent and affected third parties promptly
Retention timelines start on execution or termination, per policy
Schedule periodic review to confirm authority remains appropriate
Create the initial agreement with scope, compensation, and limits defined
Legal, finance, and executive sign-off before signature circulation
Collect signatures, witnessing, or notarization as required
Deliver executed copies and store in records management system
| Criteria | Business Agency Contract | Power of Attorney |
|---|---|---|
| Primary Purpose | commercial delegation | broad legal authority |
| Authority Scope | limited, contract-defined | often broad, may include legal acts |
| Execution Formalities | signed contract | notarized and sometimes witnessed |
| Revocation | by contract terms | formal revocation often required |
| 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 free trial | Varies | Varies | Varies | Varies |
| Bulk Send | Yes | Yes | Yes | Yes | No |
| Audit Trail | Yes | Yes | Yes | Yes | Yes |
| HIPAA Compliant | Yes | Yes | Yes | No | No |
| Envelope Cap | No envelope cap | 100 envelopes/user/year | Varies | Varies | Varies |
Optica needed repeatable delegation for investor relations and vendor onboarding.
A small real estate firm empowered on-site managers to execute leases and renewals.