Can this document be signed electronically?

Yes. Under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA statutes, electronic signatures are enforceable when intent, consent, attribution, and retention are satisfied.

Is notarization required for validity?

Generally no for internal business criteria; notarization is only required if state law or a third party specifically demands a notarized approval for evidentiary purposes.

What authentication level is sufficient?

Email-based authentication is typically acceptable for routine approvals; use higher assurance methods (SMS code, KBA, ID verification) for sensitive or high-value criteria.

How do I correct an error after signing?

Execute an amendment or corrective addendum signed by the same parties. Avoid edits to a signed PDF without a formal amendment and re-signature to preserve auditability.

Who can revoke or waive a criterion?

Only the named approvers or delegated authority set out in the approval clause may revoke or waive a criterion; document revocations in writing and preserve a signed record.

How should completed criteria be stored?

Store executed copies in a secure, access-controlled repository with an audit trail, and follow statutory retention rules appropriate to your industry and jurisdiction.

Electronic Signature
Templates
Miscellaneous
Business Custom Criterion

Business Custom Criterion

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

BUSINESS CUSTOM CRITERION AGREEMENT

This Business Custom Criterion Agreement ("Agreement") is made and entered into as of Effective Date: by and between Client Name: , with principal place of business at (hereinafter "Client"), and Service Provider Name: , with principal place of business at (hereinafter "Provider").

RECITALS

WHEREAS, Client requires customized business criteria, specifications and performance measures described herein for the Project titled: ; and

WHEREAS, Provider has the expertise and capacity to develop, document and deliver the Custom Criterion in accordance with the terms of this Agreement; and

WHEREAS, the parties desire to set forth their respective rights and obligations with respect to the development, delivery, acceptance and use of the Custom Criterion.

SCOPE OF WORK

Detailed Scope of Work

Provider shall perform the tasks described above in a professional manner consistent with industry standards. Deliverables, acceptance criteria and milestones shall be set forth in the Scope of Work and confirmed in writing by both parties prior to commencement of each milestone.

PAYMENT TERMS

Total Fee Payment Schedule

All payments shall be due within days of invoice unless otherwise agreed in writing. Late payments shall accrue interest at the lesser of (a) % per month or (b) the maximum rate permitted by applicable law. Provider may suspend performance for invoices unpaid for more than days after notice.

TERM AND TERMINATION

This Agreement commences on Start Date: and shall continue until End Date: , unless earlier terminated in accordance with this Section.

Either party may terminate this Agreement for convenience upon providing written notice to the other party at least days prior to the effective date of termination. Either party may terminate immediately for material breach if the breaching party fails to cure such breach within thirty (30) days after receipt of written notice specifying the breach. Termination shall not relieve Client of its obligation to pay for services performed and accepted prior to the effective date of termination.

CONFIDENTIALITY

"Confidential Information" means non-public information disclosed by either party to the other, whether oral, written or electronic, that is designated as confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure. Each party shall (a) use Confidential Information only to perform its obligations under this Agreement, (b) protect Confidential Information with at least the same degree of care it uses to protect its own confidential information but in no event less than reasonable care, and (c) not disclose Confidential Information to any third party except to those employees, contractors or advisors who have a need to know and are bound by obligations of confidentiality no less restrictive than those set forth herein. Confidential obligations shall continue for a period of after termination or expiration of this Agreement, except for trade secrets which shall remain protected for as long as they qualify as trade secrets under applicable law.

LIMITATION OF LIABILITY

Except for liability arising from gross negligence, willful misconduct or breach of confidentiality, in no event shall either party be liable for indirect, incidental, consequential, special or punitive damages, including loss of profits, business or goodwill. Each party's aggregate liability for any claim arising out of or related to this Agreement shall not exceed the total amounts paid by Client to Provider under this Agreement during the twelve (12) month period preceding the claim.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to its conflict of laws principles. The parties hereby consent to jurisdiction and venue in the state and federal courts located in that state for any dispute arising under this Agreement.

ENTIRE AGREEMENT

This Agreement, including any attachments and any mutually executed change orders or statements of work, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations and communications, whether written or oral. No amendment or modification of this Agreement shall be effective unless made in writing and signed by authorized representatives of both parties.

MISCELLANEOUS

Independent Contractor. Provider is an independent contractor and nothing in this Agreement shall be construed to create an employer-employee, partnership, joint venture or agency relationship between the parties. Provider shall be solely responsible for all taxes, benefits and other obligations arising from its performance.

Assignment. Neither party may assign its rights or delegate its duties under this Agreement without the prior written consent of the other party, except that Provider may assign to a successor in connection with a merger or sale of substantially all of its assets.

Severability. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect and the parties shall negotiate in good faith to replace the invalid provision with a valid provision that achieves the parties' original intent.

Client (Printed Name):

By:

Date:

Provider (Printed Name):

By:

Date:

What the Business Custom Criterion Is and When It Applies

The Business Custom Criterion is a structured document used to define, evaluate, and authorize a specific business condition, threshold, or requirement that affects contracting, procurement, compliance, or internal approvals. It records the criterion's scope, measurable thresholds, applicable parties, effective dates, and required approvals so decisions are consistent and auditable. Organizations use it to convert informal requirements into a formal, repeatable rule set that can be applied across projects, vendors, or internal requests and routed for signatures, review, and retention.

Why a Formal Criterion Matters for Business Decisions

A documented Business Custom Criterion reduces ambiguity by defining measurable thresholds, responsibilities, and approval pathways. That clarity supports consistent decision-making, creates an auditable trail for compliance reviews, and helps demonstrate internal controls to auditors or regulators under standards such as SOX or industry rules.

Who Typically Prepares and Reviews a Business Custom Criterion

Teams that set standards, manage risk, or approve vendor relationships usually create and maintain Business Custom Criteria.

Procurement managers and sourcing teams who need standard selection thresholds and vendor acceptance criteria for consistent bid evaluation.
Compliance officers and legal teams who validate that criteria meet regulatory obligations and preserve an audit trail for inspections.
Project managers and business owners who define measurable acceptance thresholds and route approvals through established sign-off chains.

Multiple stakeholders sign or approve the criterion; clear roles reduce review cycles and improve enforcement.

Typical Document Owners and Approvers

Procurement Manager

A procurement manager prepares criteria to evaluate vendors against price, delivery, and quality thresholds. They coordinate scoring, consolidate supplier responses, and escalate exceptions to legal or finance for formal approval and signature authority.

Compliance Officer

A compliance officer reviews the criterion for regulatory risks, confirms retention and disclosure obligations, and ensures the approval workflow produces an auditable record consistent with internal controls and applicable law.

Core Elements to Include in a Professional Business Custom Criterion

A robust criterion is concise but complete: identify parties, state the measurable threshold, define the metric and units, record the effective period, list exceptions, and assign approvers and reviewers.

Identifier

Unique Criterion ID and short title to reference the rule in contracts and workflows, ensuring traceability across systems and reports.

Scope

Clear description of applicability: departments, geographies, product lines, or transaction types covered by the criterion.

Thresholds

Numeric or binary thresholds (e.g., dollar amounts, defect rate percentages) with measurement method and sampling rules documented.

Measurement

Define units, frequency of measurement, accepted data sources, and tolerances to prevent inconsistent interpretation.

Approval

List required signers, order of approvals, delegated authority levels, and any conditional approver substitutions.

Exceptions

Record allowable deviations, temporary waivers, or escalation paths with expiration dates and required documentation.

Step-by-Step: Completing and Approving a Business Custom Criterion

Follow these steps to prepare, review, and finalize a criterion so approvals are consistent and an audit trail is preserved.

01

Draft: Populate fields including ID, scope, metric, and effective date.
02

Validate: Have compliance and finance review metrics and tolerances.
03

Route: Send to approvers in documented order via the workflow.
04

Finalize: Capture signatures, timestamp, and store the executed copy in records.

How eSubmission and Routing Typically Work

A clear routing flow reduces delays: upload, tag fields, specify signers, choose authentication, and monitor completion.

Upload: Add the criterion document as PDF or DOCX.
Tag Fields: Place signature, date, and data fields where required.
Select Signers: Enter approver emails and order of signing.
Track: Monitor status and download completed copies.

Configure an Online Workflow for Consistent Approvals

Map each workflow setting to approval roles and notification rules so the criterion advances automatically to the right reviewers.

Field	Configuration
Template	Create reusable template with locked fields for standard clauses
Conditional Fields	Show or hide fields based on answers to reduce signer confusion
Signer Order	Enforce sequential or parallel approvals per policy
Authentication	Require email, SMS code, or advanced ID verification

Technical Requirements for Digital Completion and Distribution

Choose a platform that supports required authentication, audit trails, and the document formats your organization uses.

File Formats: PDF, DOCX accepted
Integrations: Salesforce, NetSuite, Google Workspace
Authentication: Email, SMS, or KBA

Confirm the platform preserves timestamps, stores an immutable audit trail, and meets any industry-specific compliance needs before deployment.

Common eSignature Vendor Comparison for Executing Business Custom Criteria

Compare entry-level pricing and core capabilities for common eSignature vendors. signNow appears first per vendor order; use vendor plan details to match your required features.

	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	Free trial available	Free trial available	Free trial available	Free trial available
Bulk Send	Yes (Business Premium)	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes (BAA)	Yes (BAA)	Yes (BAA)	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Real-World Examples of Business Custom Criteria in Use

These condensed examples show how organizations capture a criterion, route approvals, and use the executed record for governance.

Optica Ventures (COO)

A small investment firm documented vendor evaluation thresholds for diligence and liquidity

Required CFO sign-off for deals above $250K
The formal criterion reduced approval time and provided an auditable record for later investor reviews.

Xerox (NetSuite Director)

An operations team standardized acceptance criteria for third-party integrations

Integrated criterion into ERP to trigger testing gates
The policy ensured consistent testing, simplified approvals, and reduced rework across deployments.

Common Preparation Errors to Avoid

Vague thresholds that lack measurement method or units and invite inconsistent interpretation.
Missing approver list or incorrect signer order that stalls automated workflows and requires manual fixes.
Incorrect names or entity details that cause signature mismatches and require corrective amendments.
Failure to document exceptions or waiver expiration, creating compliance and enforcement gaps.

Potential Consequences of an Incorrect or Incomplete Criterion

Contract Risk: Enforceability issues

Regulatory Exposure: Fines or examination findings

Operational Delay: Procurement or delivery hold-ups

Financial Loss: Incorrect payments or liabilities

Reputational Harm: Stakeholder distrust

Audit Findings: Remediation costs

Best Practices for Accurate, Efficient Criterion Management

Adopt standard templates, enforce data validation, and integrate criteria into the systems that trigger approvals and reporting.

Use Standard Templates

Maintain a single approved template to ensure all criteria include required fields, consistent IDs, and mandatory legal language for easier review and automation.

Validate Entries

Apply field validation (numeric ranges, date formats) to prevent entry errors that delay approvals or invalidate measurements.

Enforce Approval Order

Automate signer sequencing and require role-based authentication to ensure the correct chain of authority signs each criterion.

Archive Executed Copies

Store signed records in a secure, searchable repository with audit trail metadata for retrieval during audits or disputes.

How a Business Custom Criterion Differs from Common Alternatives

Compare the criterion with related documents to choose the right vehicle for governance, vendor selection, or contractual requirements.

Criteria Type	Business Custom Criterion	Supplier Scorecard
Purpose	define approval thresholds	ongoing vendor performance
Legal Force	often contractual when attached	operational, sometimes non-contractual
Required Witness	rarely required	not required
Typical Use	single-rule enforcement	multi-metric monitoring

Typical Timelines and Processing Expectations

Set clear internal SLAs so stakeholders know review and execution windows and avoid unnecessary delays.

Draft Completion:

2–5 business days for initial draft and internal review

Compliance Review:

3–7 business days depending on complexity

Approver Turnaround:

1–3 business days per approver on average

Execution and Distribution:

Signed copies distributed immediately after final signature

Record Retention Start:

Retention begins on the effective date or signature date

Frequently Asked Questions About the Business Custom Criterion

Answers address common legal, procedural, and technical issues encountered when preparing, signing, and storing a Business Custom Criterion.

Need help? Contact support

Can this document be signed electronically?
Yes. Under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA statutes, electronic signatures are enforceable when intent, consent, attribution, and retention are satisfied.
Is notarization required for validity?
Generally no for internal business criteria; notarization is only required if state law or a third party specifically demands a notarized approval for evidentiary purposes.
What authentication level is sufficient?
Email-based authentication is typically acceptable for routine approvals; use higher assurance methods (SMS code, KBA, ID verification) for sensitive or high-value criteria.
How do I correct an error after signing?
Execute an amendment or corrective addendum signed by the same parties. Avoid edits to a signed PDF without a formal amendment and re-signature to preserve auditability.
Who can revoke or waive a criterion?
Only the named approvers or delegated authority set out in the approval clause may revoke or waive a criterion; document revocations in writing and preserve a signed record.
How should completed criteria be stored?
Store executed copies in a secure, access-controlled repository with an audit trail, and follow statutory retention rules appropriate to your industry and jurisdiction.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now