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Business Commandments

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BUSINESS COMMANDMENTS

Parties and Recitals

Party A Name:

Party A Address:

Party B Name:

Party B Address:

WHEREAS, Party A seeks to establish a written statement of core operating principles and obligations for its business relationship with Party B; and

WHEREAS, Party B has experience and expertise relevant to the business activities described herein and agrees to perform services and to abide by the business principles set forth as the Business Commandments; and

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this instrument, and other good and valuable consideration, the Parties agree as follows.

Scope of Work

Business Commandments — Principles and Acknowledgments

The Parties adopt the following foundational principles as binding commitments in conduct and performance under this Agreement. The Parties acknowledge each numbered commandment by checking the corresponding box.

Integrity: Conduct all business honestly, accurately report performance and financials, and avoid misleading statements.

Customer First: Prioritize customer outcomes, respond to concerns promptly, and document resolutions.

Clarity of Commitments: Define deliverables, timelines, and acceptance criteria in writing before execution of major tasks.

Respect for Confidentiality: Treat proprietary information as confidential and use it only for permitted purposes.

Fair Compensation: Compensate services fairly and pay invoices in accordance with agreed terms.

Compliance: Conduct operations in compliance with applicable laws and regulatory obligations.

Continuous Improvement: Maintain quality controls, measure outcomes, and reasonably implement improvements.

Transparency in Conflicts: Disclose potential conflicts of interest promptly and in writing.

Accountability: Accept responsibility for mistakes, remedy harm, and document corrective action.

Respectful Collaboration: Communicate professionally, honor agreed schedules, and escalate unresolved issues according to the notice procedures below.

Payment Terms

Total Compensation: $ payable in accordance with the schedule below. All monetary amounts are stated in U.S. dollars unless otherwise agreed in writing.

Invoices shall be submitted by Party B and paid by Party A within days of receipt. Late payments shall incur interest at or the maximum lawful rate, whichever is lower.

Term and Termination

This Agreement commences on and continues until unless earlier terminated as provided herein.

Either Party may terminate this Agreement for convenience upon days' prior written notice. Either Party may terminate for material breach if the breaching Party fails to cure such breach within days after written notice specifying the breach.

Confidentiality

Each Party (the "Receiving Party") shall keep confidential and shall not disclose to any third party any Confidential Information of the other Party (the "Disclosing Party") except as permitted in this Agreement. "Confidential Information" means non-public information disclosed in any form that is designated as confidential or that a reasonable person would understand to be confidential under the circumstances.

Confidential Information does not include information that: (a) is or becomes publicly available through no breach of this Agreement; (b) was rightfully known to the Receiving Party prior to disclosure; (c) is received from a third party without breach of any obligation of confidentiality; or (d) is independently developed without use of the Disclosing Party's Confidential Information. The Receiving Party may disclose Confidential Information to its employees, agents, contractors, or advisors who have a need to know and who are bound by confidentiality obligations at least as protective as those contained herein.

All confidentiality obligations shall survive termination of this Agreement for a period of three (3) years, or such longer period as required by applicable law for trade secrets.

Notices

Governing Law; Dispute Resolution

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of laws principles. The Parties shall attempt in good faith to resolve disputes by negotiation; if negotiations fail, disputes shall be resolved by the courts located in the county of the governing state unless the Parties agree in writing to an alternative forum.

Entire Agreement; Amendment

This Agreement, including all appendices and written amendments signed by both Parties, constitutes the entire agreement between the Parties with respect to its subject matter and supersedes all prior and contemporaneous agreements, proposals, and communications, whether oral or written.

No amendment or waiver of any provision of this Agreement shall be effective unless in writing and signed by authorized representatives of both Parties.

Miscellaneous Provisions

Assignment: Neither Party may assign its rights or delegate its obligations under this Agreement without the prior written consent of the other Party, except that either Party may assign to an affiliate or in connection with a merger, acquisition or sale of substantially all assets, provided the assignee assumes the assigning Party's obligations in writing.

Severability: If any provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall remain in full force and effect and the Parties shall negotiate in good faith a substitute, valid provision that most nearly effects the Parties' intent.

Party A - Printed Name:

By:

Date:

Party B - Printed Name:

By:

Date:

Enter text✕

What the Business Commandments Are

The Business Commandments is a concise set of written principles and operational rules used by organizations to define governance, decision-making priorities, and compliance expectations across business functions. It typically documents roles, approval thresholds, recordkeeping requirements, and signature authority to reduce ambiguity and support auditability in commercial transactions.

Why a Written Set of Commandments Matters

A clear Business Commandments document centralizes policies, clarifies who may bind the company, and reduces operational risk. It supports enforceability by documenting intent, consent, and retention consistent with ESIGN (15 U.S.C. ch. 96) and applicable state UETA rules.

Why a Written Set of Commandments Matters

Who Typically Creates and Relies on Business Commandments

Small and mid-sized businesses, corporate legal teams, finance departments, and operations leaders commonly draft or adopt Business Commandments to standardize approvals and accountability.

  • Leadership teams and boards that set strategic approval thresholds and governance standards for transactions.
  • Finance and procurement groups that need clear payment, purchase order, and signing authority limits.
  • Legal and compliance teams that enforce policy language, retention rules, and signature procedures.

Well-drafted Commandments reduce disputes, speed routine approvals, and create a defensible record showing who acted and under what authority.

Filling Out the Business Commandments: Step-by-Step

Follow these sequential steps to draft, approve, and implement the Business Commandments with an auditable trail.

  • 01
    Draft: Prepare initial language and define roles and limits.
  • 02
    Review: Legal and finance review for enforceability and tax implications.
  • 03
    Authorize: Obtain signatures from listed authorized signers in proper order.
  • 04
    Publish: Distribute final, signed document and store securely.

Common Questions About Business Commandments

Answers to frequently asked questions about execution, legal validity, and recordkeeping for Business Commandments.


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Essential Elements Every Business Commandments Should Include

Include these structural elements to ensure the document is actionable, auditable, and legally defensible across common business scenarios.

Scope

Define the document's subject matter, covered entities, and transaction types so authority boundaries are clear and enforceable.

Authority Matrix

List roles, limits, and required approvals for financial, contractual, and operational actions to reduce ambiguity and enable automated routing.

Signature Rules

Specify permitted signature methods (electronic, digital, notarized) and authentication strength required for different approval levels.

Amendment Process

Describe how changes are proposed, approved, and recorded to ensure all parties rely on the current version.

Recordkeeping

State retention periods, custodianship, and archival format to meet IRS, HIPAA, and other regulatory obligations.

Dispute Resolution

Include governing law, venue, and escalation steps to reduce litigation risk and clarify remedies.

Security and Compliance Controls to Specify

Encryption: TLS 1.2/1.3; AES-256 at rest
Audit Trail: Timestamped event log
Certifications: SOC 2 Type II; ISO 27001
HIPAA Support: BAA available
Regulated Records: 21 CFR Part 11 compliant
Accessibility: WCAG 2.0 AA

Risks and Potential Penalties

Incorrect Tax Reporting: 1099 penalties
I-9 Noncompliance: Civil fines
HIPAA Violations: Civil monetary penalties
Unauthorized Contracting: Breach liability
Record Destruction: Spoliation risk
Poor Audit Trail: Enforceability issues

Common Preparation Mistakes to Avoid

  • Failing to update signer authority after personnel changes, which can leave the company exposed to unauthorized obligations and internal disputes.
  • Leaving ambiguous monetary thresholds or undefined approval paths, causing delays and inconsistent decision-making across departments.
  • Using informal signature lines without an audit trail, which undermines proof of intent and may complicate enforcement.
  • Neglecting to align retention language with IRS, HIPAA, or industry-specific recordkeeping requirements, risking regulatory noncompliance.

How Electronic Execution Works for the Commandments

An efficient eSignature workflow captures intent, authenticates signers, and preserves reproducible records for compliance and audits.

  • Upload: Prepare final PDF or DOCX and upload to the signing platform.
  • Place Fields: Add signature, date, and role-specific fields on the document.
  • Authenticate: Choose signer verification: email, SMS code, or stronger methods.
  • Archive: Store signed PDF with embedded audit trail and export option.

Configuring a Digital Approval Workflow

Key settings to configure in an electronic workflow ensure correct signer order, field behavior, and audit capture.

Field Configuration
Authentication Email | SMS | KBA
Signature Type Click-to-sign | PKI
Routing Order Sequential | Parallel
Retention Settings PDF export | Audit trail

eSignature Vendor Comparison for Executing Business Commandments

A concise comparison of common vendor attributes and pricing models to inform procurement decisions. signNow is listed first per table conventions.

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

Relevant Filing and Reporting Deadlines to Consider

Some governance documents have related filing or reporting schedules; the following federal deadlines are commonly relevant.

Provide W-9 Upon Request:

A W-9 should be supplied when requested by a payer; no fixed federal deadline.

1099-NEC Deadline:

Issue recipient and IRS copies by January 31.

Form 1040 Deadline:

Individual tax returns due April 15 (extension to Oct 15 with Form 4868).

FBAR Deadline:

FinCEN Form 114 due April 15 with automatic extension to October 15.

I-9 Retention:

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

Representative Roles and Responsibilities

Founder / CEO

Typically sets initial policy direction and may be listed as an authorized signer for high-value transactions; must ensure delegation is documented and that successors are promptly recorded.

General Counsel

Usually responsible for drafting the Commandments, ensuring legal compliance, and overseeing amendments; provides legal sign-off on governing law, dispute resolution, and retention provisions.

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