Is an e-signature valid?

Yes. Electronic signatures are generally valid under the ESIGN Act (15 U.S.C. ch. 96) and state UETA statutes, provided the transaction is not an excluded category and intent, consent, attribution, and retention are met.

When is notarization required?

Notarization is required when a third party, state law, or the transaction demands a notarized acknowledgement (for example, some real estate or POA instruments). Check the governing state's notary rules before execution.

How do I revoke authority?

Revoke by delivering written notice to the authorized party and affected third parties; record the revocation date and method. Consider filing a public notice when appropriate to limit third-party reliance.

What if the signer’s name differs?

Name mismatches can invalidate reliance. Use full legal names, include aliases or DBA references where relevant, and attach identity documents where identity verification is required.

Can remote notarization be used?

Remote Online Notarization is permitted in most states but subject to state-specific rules. Verify RON acceptance and identity-proofing requirements before relying on remote notarization.

How long must I keep the agreement?

Retention depends on purpose: retain for the contract term plus at least three years; follow IRS (IRC §6501(a)) and HIPAA (45 CFR §164.530(j)) retention where applicable and check state variations.

Electronic Signature
Templates
Miscellaneous
Business Authorization and Agreement

Business Authorization and Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

BUSINESS AUTHORIZATION AND AGREEMENT

This Business Authorization and Agreement ("Agreement") is made and entered into as of the Effective Date set forth below by and between:

Authorizer (Principal)

Business Name Entity Type (select all that apply)

Corporation LLC Partnership Individual/Sole Proprietor

Authorized Representative Title Address for Notices Contact Email

Authorized Party (Agent / Service Provider)

Business Name Entity Type (select all that apply)

Corporation LLC Partnership Individual/Sole Proprietor

Authorized Representative Title Address for Notices Contact Email

RECITALS

WHEREAS, Authorizer conducts business and operations requiring representation, contracting, invoicing and other specified actions in furtherance of its commercial activities; and

WHEREAS, Authorizer desires to appoint Agent to perform certain services and to act on Authorizer's behalf for the limited purposes and scope set forth in this Agreement; and

WHEREAS, Agent represents that it has the requisite experience, capacity and authority to perform the services described herein and to accept the appointment and obligations contained in this Agreement.

SCOPE OF WORK

Agent shall perform the tasks, duties and deliverables described below. Agent shall act in good faith and with reasonable skill, care and diligence in the performance of its obligations.

Detailed Scope of Work

PAYMENT TERMS

In consideration of the services performed, Authorizer will pay Agent in accordance with the terms set forth below.

Total Estimated Amount Payment Schedule Invoicing and Payment Terms Late Payment Fee

Agent shall submit itemized invoices supported by reasonable documentation. Unless otherwise agreed in writing, payment of undisputed portions of each invoice shall not be withheld, reduced or offset by Authorizer.

TERM AND TERMINATION

This Agreement shall commence on the Effective Date and, unless earlier terminated in accordance with this Section, shall continue until the End Date set forth below.

Effective Date End Date Notice Period for Termination Without Cause

Either party may terminate this Agreement for material breach by the other party that remains uncured for a period of thirty (30) days after written notice specifying the breach. Termination shall not relieve either party of obligations accrued prior to termination.

CONFIDENTIALITY

For the purposes of this Agreement, "Confidential Information" means non-public information disclosed by one party to the other, whether oral, written or electronic, including business plans, financial information, trade secrets, technical data, customer lists and other proprietary information. Confidential Information does not include information that: (a) is or becomes generally known to the public through no fault of the receiving party; (b) was known to the receiving party prior to disclosure as evidenced by contemporaneous written records; (c) is lawfully received from a third party without restriction; or (d) is independently developed by the receiving party without use of or reference to the disclosing party's Confidential Information.

The receiving party shall (i) hold Confidential Information in strict confidence and not disclose it to any third party except as authorized in writing, (ii) use Confidential Information solely for the performance of its obligations under this Agreement, and (iii) restrict access to Confidential Information to those employees or contractors with a need to know who are bound by confidentiality obligations at least as protective as those herein. The obligations set forth in this section shall survive termination of this Agreement for a period of three (3) years, except with respect to trade secrets, which shall be protected for so long as they qualify as trade secrets under applicable law.

AUTHORIZATION AND LIMITATIONS

Authorizer hereby appoints Agent and grants Agent the limited authority to act on behalf of Authorizer only to the extent necessary to perform the Scope of Work, including executing contracts, submitting invoices and accepting payments as expressly authorized in writing by Authorizer. Agent shall not, without prior written consent, obligate Authorizer to any material expenditure or third-party contract outside the scope identified in this Agreement.

Agent shall provide periodic reports of actions taken under this authority upon request and shall promptly notify Authorizer of any claim, demand or litigation related to actions taken on Authorizer's behalf.

Authority Includes Signing Contracts

Yes No

REPRESENTATIONS, WARRANTIES AND INDEMNIFICATION

Each party represents and warrants that it has the full power, authority and legal right to enter into this Agreement and to perform its obligations. Each party shall indemnify, defend and hold harmless the other party and its officers, directors and employees from and against any third-party claims, liabilities, damages, costs and expenses (including reasonable attorneys' fees) arising out of the indemnifying party's negligence, willful misconduct, or breach of this Agreement.

LIMITATION OF LIABILITY

Except for breaches of confidentiality, gross negligence, willful misconduct, or indemnification obligations, neither party shall be liable to the other for consequential, incidental, special or punitive damages, and aggregate liability for direct damages shall not exceed the amounts paid or payable under this Agreement during the twelve (12) months preceding the event giving rise to the claim.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State specified below, without regard to conflict of law principles.

Governing Law State

MISCELLANEOUS

Entire Agreement: This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, proposals and communications, whether oral or written. No amendment, modification or waiver shall be binding unless made in writing and executed by authorized representatives of both parties.

Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect. Waiver of any breach shall not constitute waiver of any subsequent breach.

Additional Terms or Notes

Authorizer:

By:

Date:

Agent:

By:

Date:

What a Business Authorization and Agreement Is

A Business Authorization and Agreement is a written instrument that grants a person or entity the authority to act on behalf of a business for defined purposes. It typically identifies the principal business, the authorized agent, the scope and limits of authority, the effective date and duration, and any conditions or compensation. The document can function as a standalone authorization, part of a vendor or engagement contract, or an internal corporate resolution. When executed correctly it clarifies decision rights and reduces disputes about who may sign, bind, or represent the business.

Why this Agreement Matters and Its Legal Basis

A clear Business Authorization and Agreement allocates authority, documents consent, and creates enforceable obligations. In the United States electronic execution is commonly valid under the ESIGN Act (15 U.S.C. ch. 96) and state UETA statutes, subject to statutory exceptions and execution formalities.

Typical parties who prepare or sign this agreement

Different organizations prepare Business Authorization and Agreements for internal delegation, vendor relationships, and one-off transactions.

Small business owners delegating contract signing to managers or agents for routine vendor agreements.
Corporate legal or finance teams authorizing officers to open accounts, sign loan documents, or enter vendor contracts.
External agents or vendors who need limited authority to collect payments, ship goods, or represent the company.

Tailor the document to the party type and the transaction complexity; stronger verification and notarization reduce downstream risk.

Who Can Sign on Behalf of the Business

Authorized Signatory

A named officer (CEO, CFO, President) or an employee explicitly delegated by corporate resolution. The signatory should be identified by title, authorized scope, and documentation (minutes or board resolution) to avoid challenges to authority.

External Agent

A non-employee (consultant, broker, vendor) may receive limited authority for specified tasks. The agreement should state precise powers, expiry, and any reporting requirements to limit liability and clarify revocation procedures.

Security, Compliance, and Technical Controls

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest

Audit Trail: Detailed timestamps and activity log

SOC 2: SOC 2 Type II certified

HIPAA: BAA required for PHI workflows

21 CFR Part 11: Supports electronic records controls

ESIGN / UETA: Meets U.S. e-signature legal tests

Principal Penalties and Legal Risks to Watch

Incorrect Tax Filings: $60–$330 per form

Intentional Disregard: $660+ per form

Backup Withholding: 24% withholding rate

I-9 Violations: $281–$2,789 per violation

Unauthorized Actions: Civil liability for exceeded authority

Missing Notarization: Document may be unenforceable

Common preparation errors to avoid

Failing to identify the exact scope of authority, which can create ambiguity about permitted acts and lead to disputes.
Using inconsistent names or titles for the business or signer, causing mismatched records and possible non-recognition by third parties.
Omitting effective or expiration dates, which complicates revocation and can extend unintended authority.
Neglecting required witness or notary steps for state-specific formalities, risking invalidation in official or regulatory contexts.

Step-by-step: completing a Business Authorization and Agreement

Follow a consistent preparation and execution workflow to reduce errors and create a clear audit trail for third parties and regulators.

01

Gather documents: Collect EIN, corporate resolution, and IDs
02

Define authority: State precise powers, limits, and duration
03

Identify signers: Name roles, titles, and verification method
04

Execute: Sign, notarize if required, and retain copies

Configuring an online signing workflow

Configure authentication, routing, and storage settings before sending to ensure compliance and an auditable trail.

Field	Configuration
Authentication	Email plus SMS code or KBA where required
Signature Type	Simple e-sign or PKI-based digital signature
Routing Order	Sequential or parallel signer order
Storage Format	PDF/A preferred for long-term retention

How online completion and submission typically flows

Digital workflows follow a consistent sequence that preserves intent, attribution, and an evidentiary audit trail for enforceability.

Upload document: Sender uploads final agreement file
Place fields: Add signature, date, and role fields
Authenticate signer: Use email link, SMS code, or KBA
Complete signing: Signer reviews, signs, and receives copy

Technical and integration considerations

Confirm supported file types, identity methods, and storage options before starting an online execution workflow.

File formats: PDF, DOCX, or HTML accepted
Integrations: Salesforce, NetSuite, Google Workspace
Auth methods: Email, SMS PIN, or KBA

Comparing eSignature vendors for execution and storage

Basic plan pricing and compliance features affect cost and suitability for executing business authorizations and agreements; signNow is listed first per vendor comparison rules.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

How this form compares with similar authorization documents

Compare common authorization instruments to choose the right form for the intended legal effect and formalities.

Document Type	Business Authorization	Power of Attorney	Corporate Resolution	Letter of Authorization
Notarization Required	varies	often yes		varies
Typical Scope	limited commercial acts	broad legal authority	corporate governance acts	specific task authority
Revocable		often revocable	depends on bylaws
Common Use	vendors and contracts	health/finance decisions	board approvals	shipping or pickup authority

Key dates and timing considerations

Track effective dates, execution deadlines, and any filing or reporting timelines tied to the authorization to maintain compliance.

Effective Date:

Document takes effect on the specified MM/DD/YYYY date

Execution Date:

Date of signature; used to calculate retention start

Tax Reporting:

Provide to payers when required to avoid withholding

Notary Timing:

Notarize at signing if state or third party requires

Revocation Notice:

Deliver written revocation to affected parties promptly

Real-world examples of use in practice

These short examples show how organizations use business authorizations to streamline operations while preserving legal clarity.

Martin Properties

A regional property manager needed remote execution for leasing tasks

Used targeted authority for lease signings
The team processed and executed authorizations online, improving turnaround and maintaining secure records across multiple properties.

Fertility Centers of Illinois

A healthcare provider required delegation for intake and billing staff

Limited powers tied to billing only
The firm documented authority with privacy safeguards and a BAA where PHI was involved to meet HIPAA obligations.

FAQs and troubleshooting for common issues

Answers to common legal and practical questions about preparing, signing, and storing Business Authorization and Agreements.

Need help? Contact support

Is an e-signature valid?
Yes. Electronic signatures are generally valid under the ESIGN Act (15 U.S.C. ch. 96) and state UETA statutes, provided the transaction is not an excluded category and intent, consent, attribution, and retention are met.
When is notarization required?
Notarization is required when a third party, state law, or the transaction demands a notarized acknowledgement (for example, some real estate or POA instruments). Check the governing state's notary rules before execution.
How do I revoke authority?
Revoke by delivering written notice to the authorized party and affected third parties; record the revocation date and method. Consider filing a public notice when appropriate to limit third-party reliance.
What if the signer’s name differs?
Name mismatches can invalidate reliance. Use full legal names, include aliases or DBA references where relevant, and attach identity documents where identity verification is required.
Can remote notarization be used?
Remote Online Notarization is permitted in most states but subject to state-specific rules. Verify RON acceptance and identity-proofing requirements before relying on remote notarization.
How long must I keep the agreement?
Retention depends on purpose: retain for the contract term plus at least three years; follow IRS (IRC §6501(a)) and HIPAA (45 CFR §164.530(j)) retention where applicable and check state variations.

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