Is an electronic signature valid?

Yes. Electronic signatures are legally valid under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, provided intent, consent, attribution, and record retention requirements are met.

When is notarization required?

Most commercial contracts do not require notarization, but deeds, certain powers of attorney, and some state-specific documents do; check the applicable state statute or Secretary of State guidance.

What if party names differ?

Mismatched or abbreviated party names can create enforceability and payment issues; always use the precise legal entity name from formation or government filings.

How long must we keep the Test?

Retain contracts for at least three years after filing for tax-related records (IRC §6501(a)); retain HIPAA-related records for six years (45 CFR §164.530(j)).

Can I use remote notarization?

Remote online notarization (RON) is permitted in many states with identity proofing and audio-video recording requirements; verify state notary commission rules.

What authentication is sufficient?

Email-only authentication is often adequate under ESIGN/UETA, but higher-risk transactions may require SMS, KBA, or advanced signer authentication for stronger attribution.

Electronic Signature
Templates
Miscellaneous
Business Contracts Test

Business Contracts Test

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

Business Contracts Test

This Business Services Agreement (the Agreement) is made effective as of Date: by and between Party A Name: and Party B Name: .

Recitals

WHEREAS, Party A is engaged in the business of procuring professional services and requires certain services as set forth in this Agreement; and

WHEREAS, Party B possesses the expertise, personnel and capability to perform such services and agrees to perform services for Party A on the terms and conditions set forth herein.

Scope of Work

Party B shall provide the services and deliverables described below. Party B shall perform the services in a professional manner consistent with industry standards and in accordance with the schedule set forth in this Agreement.

Detailed Scope of Work

Payment Terms

In consideration of the services rendered by Party B, Party A shall pay Party B the compensation described below. All payments are due in United States dollars unless otherwise agreed in writing.

Total Contract Amount Payment Schedule

Late payments shall accrue a late fee of on any outstanding balance after a grace period of days. Party A shall also be responsible for reasonable collection costs and attorneys' fees incurred by Party B in enforcing payment.

Term and Termination

This Agreement shall commence on the Start Date: and shall continue until the End Date: unless earlier terminated as provided herein.

Either party may terminate this Agreement for convenience upon providing written notice at least days prior to the effective date of termination. Either party may terminate immediately for material breach by the other party if such breach is not cured within thirty (30) days after receipt of written notice.

Confidentiality

For purposes of this Agreement, Confidential Information means non-public information disclosed by one party to the other that is designated as confidential or that, under the circumstances, ought reasonably to be treated as confidential. Confidential Information excludes information that is: (a) publicly known at the time of disclosure or becomes publicly known through no fault of the receiving party; (b) rightfully received from a third party without restriction; or (c) independently developed by the receiving party without use of Confidential Information.

The receiving party shall hold Confidential Information in confidence, shall not use Confidential Information except to perform its obligations under this Agreement, and shall not disclose Confidential Information to any third party except to employees or contractors who need to know and who are bound by obligations of confidentiality at least as restrictive as those herein. These obligations shall survive termination of this Agreement for a period of .

Representations and Warranties

Each party represents and warrants that it has the full right, power and authority to enter into this Agreement and to perform its obligations hereunder. Party B further represents that the services will be performed in a professional and workmanlike manner consistent with industry standards.

Indemnification and Limitation of Liability

Each party shall indemnify, defend and hold harmless the other party from and against claims arising out of the indemnifying party's negligence, willful misconduct or breach of this Agreement. Except for liability arising from willful misconduct or indemnifiable third-party claims, neither party shall be liable to the other for consequential, incidental, special, or punitive damages. The parties' aggregate liability under this Agreement shall not exceed the total amounts actually paid under this Agreement in the twelve (12) months preceding the claim.

Notices

All notices required or permitted under this Agreement shall be in writing and delivered to the addresses provided below or to such other address as either party may specify in writing.

Party A Address for Notices Party B Address for Notices

Governing Law

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

Entire Agreement

This Agreement, including any exhibits and attachments hereto, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings and representations, whether written or oral. No amendment or waiver shall be effective unless in writing and signed by both parties.

Miscellaneous

If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect. Neither party may assign its rights or delegate its duties under this Agreement without the prior written consent of the other party, except to a successor in interest in connection with a merger or sale of substantially all of its assets.

Party A:

By:

Date:

Party B:

By:

Date:

What the Business Contracts Test Is and When to Use It

The Business Contracts Test is a structured checklist and review template designed to verify that a commercial agreement is complete, legally enforceable, and ready for signature. It guides users through core contract elements—parties, scope, payment terms, liability, termination, and signatures—while highlighting compliance touchpoints such as governing law, statutory notices, and required attachments. The Test can be used before execution, at renewal, or during due diligence to reduce execution risk, catch missing clauses, and ensure records meet retention and audit requirements across business units.

Why Completing a Business Contracts Test Matters

A concise Test reduces the risk of missing or inconsistent contract terms and clarifies obligations before execution.

Who Typically Completes the Business Contracts Test

Teams and roles that use the Test vary by organization size and function.

Small business owners and founders who need a quick legal and commercial sanity check before signing.
In-house legal and contracts managers conducting consistency reviews and risk assessments across agreements.
Procurement and finance teams validating payment terms, tax requirements, and vendor insurance before onboarding.

Use the Test as a shared checklist between legal, procurement, finance, and business owners to speed approvals.

Essential Components to Include in the Test

A professional Business Contracts Test breaks the agreement into six core areas to verify completeness, legal compliance, and operational readiness before signature.

Identifying Parties

Confirm the full legal names, entity types, and authorized signers for each party to prevent ambiguity and attachment of the wrong legal entity.

Scope & Deliverables

Describe services or goods with sufficient detail, acceptance criteria, timelines, and milestones so performance obligations are measurable and enforceable.

Consideration

State the exact payment amounts, schedule, invoicing requirements, taxes, and any conditional payments to avoid misunderstandings and tax issues.

Termination & Remedies

List termination triggers, notice periods, cure rights, and remedies including damages, liquidated damages, and limitation of liability clauses.

Compliance & Privacy

Note applicable laws, data protections, HIPAA requirements for health data, and any required notices or consumer disclosures.

Signature & Execution

Specify execution method (wet, RON, or electronic signature), required witness or notarization steps, and effective date mechanics.

Step-by-Step: Completing the Business Contracts Test

Follow these steps in order to review, approve, and prepare a contract for execution with minimal rework.

01

1. Upload: Import the agreement and any exhibits into the Test workspace.
02

2. Populate Fields: Complete required metadata, dates, and party details.
03

3. Route for Review: Send to legal, finance, and stakeholders for comments and redlines.
04

4. Execute: Apply signatures by the agreed execution method and archive.

Configuring a Digital Review and Approval Workflow

Set up an approval workflow that enforces review order, authentication, and storage rules to reduce signing friction and maintain auditability.

Field	Configuration
Assign Signers	Specify signer order and roles for sequential or parallel signing.
Authentication	Choose email, SMS code, or knowledge-based verification for signer identity.
Reminders	Enable automated reminders and expiry notifications to reduce unsigned agreements.
Storage	Select cloud repository and retention rules for the completed file.

Where to Send or File the Completed Test

After completion, route the validated contract and supporting records to the appropriate stakeholders and repositories to preserve chain of custody.

Counterparty: Send the executed copy to all contracting parties for their records.
Legal Department: Archive redlines, final agreement, and the Test output for legal reference.
Finance: Deliver executed payment schedules and billing attachments to accounts payable.
Cloud Storage: Store final PDF and audit trail in the designated repository with access controls.

Digital Signing, File Formats, and Integrations

Use eSignature platforms and integrations that support required file formats, authentication, and audit trails for compliance.

File Formats: PDF, DOCX, and XLSX supported.
Integrations: Salesforce, NetSuite, Google Workspace supported.
Authentication: Email, SMS, KBA, or stronger methods available.

Typical Timelines and Internal Deadlines

Track standard internal review and execution timeframes so parties meet internal SLAs and external statutory dates.

Internal Legal Review:

Allow 3–5 business days for standard contracts and 7–14 days for complex agreements.

Counterparty Response:

Expect 7–21 days depending on negotiation scope and stakeholder availability.

Signature Target:

Set a 14-day default window to complete signatures for routine agreements.

Record Filing:

File or archive the final signed agreement within five business days after execution.

Renewal Notice:

Provide notice 30–90 days before auto-renewal when applicable.

Key Milestones from Draft to Execution

Use this milestone sequence to map responsibility and expected timing during the contract lifecycle.

01

Drafting Complete

Document finalized for internal review and redline circulation.

02

Review & Negotiation

Stakeholders review terms and exchange redlines until agreement reached.

03

Approval & Sign-Off

Authorized approvers confirm commercial and legal readiness to execute.

04

Execution & Archival

Agreement signed by authorized parties and stored with audit trail.

Common Mistakes to Avoid

Using informal or abbreviated party names that later create ambiguity in enforcement or payment routing.
Failing to record the effective date and relying on signature dates that differ between parties.
Omitting payment terms, tax treatment, or invoicing instructions that trigger disputes or withholding.
Neglecting to confirm signatory authority, leading to voidable agreements or the need for re-execution.

Risks and Potential Consequences

Unenforceable Agreement: Material defects can render the contract voidable.

Regulatory Fines: Noncompliance with sector rules may incur fines.

Tax Exposure: Incorrect reporting may trigger IRC §6721 penalties.

HIPAA Breach: Improper handling of health data risks HIPAA sanctions.

Notary Errors: Defective notarization can require re-execution.

Signature Disputes: Weak authentication increases repudiation risk.

eSignature Pricing Comparison Relevant to Contract Execution

Compare starting prices and core capabilities for common eSignature providers to align platform cost and compliance with your contract workflows.

	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	Yes, 7-day trial	No	No	Yes, limited	Yes, limited
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Real-World Examples of Contract Workflows

These brief customer arcs show how organizations standardized contract signing and tracked compliance across teams.

Optica Ventures — COO

Their team needed a simple interface to collect signatures quickly and reliably.

The platform streamlined customer-facing signing.
By using a standardized Test and digital execution, Optica reduced turnaround and improved customer experience while maintaining a clear audit trail for each executed agreement.

Xerox — Director of NetSuite Operations

Xerox required integration with back-office systems to attach agreements to records.

NetSuite integration was key.
Integrating the Test output with the ERP let Xerox automate post-signature processing, ensuring executed contracts and billing data synchronized without manual rekeying or lost documents.

Who Can Sign and Why Their Role Matters

Chief Executive Officer — CEO

A CEO typically has express authority to bind the company for material contracts; however, verify board resolutions or delegated signing limits before execution.

General Counsel — Authorized Signer

Legal counsel or delegated signatory often completes legal reviews and executes routine agreements within defined monetary thresholds and policy limits.

Frequently Asked Questions About the Business Contracts Test

Answers to common questions about field completion, signature validity, retention, and platform considerations for the Test.

Need help? Contact support

Is an electronic signature valid?
Yes. Electronic signatures are legally valid under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, provided intent, consent, attribution, and record retention requirements are met.
When is notarization required?
Most commercial contracts do not require notarization, but deeds, certain powers of attorney, and some state-specific documents do; check the applicable state statute or Secretary of State guidance.
What if party names differ?
Mismatched or abbreviated party names can create enforceability and payment issues; always use the precise legal entity name from formation or government filings.
How long must we keep the Test?
Retain contracts for at least three years after filing for tax-related records (IRC §6501(a)); retain HIPAA-related records for six years (45 CFR §164.530(j)).
Can I use remote notarization?
Remote online notarization (RON) is permitted in many states with identity proofing and audio-video recording requirements; verify state notary commission rules.
What authentication is sufficient?
Email-only authentication is often adequate under ESIGN/UETA, but higher-risk transactions may require SMS, KBA, or advanced signer authentication for stronger attribution.

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