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Business Email Relay Contract

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BUSINESS EMAIL RELAY CONTRACT

This Business Email Relay Contract (the "Agreement") is made effective as of between Client Name: and Service Provider Name: .

WHEREAS

WHEREAS, Client desires to transmit commercial and administrative email traffic using an outsourced email relay and related relay services (the "Services") for Client domain(s) ; and

WHEREAS, Provider has the technical capacity, infrastructure, and expertise to operate and maintain an email relay service, and is willing to provide such Services to Client pursuant to the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows:

1. SCOPE OF WORK

Provider will operate an email relay to accept, queue, and transmit outbound messages from Client's authorized senders on Client domain(s). Services include infrastructure provisioning, outbound transport, basic abuse monitoring, and delivery reporting as further described in the Scope of Work. Provider's responsibilities do not include content creation, subscriber list management, or compliance with any laws applicable to the content of Client's messages except as expressly stated in this Agreement.

2. SERVICE LEVELS & OPERATIONAL REQUIREMENTS

Provider will maintain reasonable industry-standard measures to ensure availability and deliverability of relayed email. Provider will operate primary relay hosts with TLS support and standard port configurations, perform routine abuse and reputation monitoring, and provide Client with access to delivery reports described in the Scope of Work. Provider shall use commercially reasonable efforts to maintain a monthly uptime percentage of %.

3. PAYMENT TERMS

Unless otherwise stated in the Payment Schedule, Provider will invoice Client monthly in arrears. Payment is due within calendar days of invoice date. Late payments shall incur a late fee of per month on the outstanding balance, or the maximum allowed by law, whichever is less. Client is responsible for any reasonable collection costs, including attorneys' fees, incurred by Provider in collecting overdue amounts.

4. TERM AND TERMINATION

This Agreement shall commence on and shall continue until unless earlier terminated in accordance with this Section.

Either party may terminate this Agreement for convenience upon providing days' prior written notice to the other party. Either party may terminate immediately for cause if the other party materially breaches this Agreement and fails to cure the breach within 15 days after receipt of written notice specifying the breach.

Upon termination, Provider will cease relaying messages on behalf of Client and Client shall promptly pay all outstanding fees due through the date of termination. Provider may suspend Services immediately if Client is delinquent in payment beyond the cure period or if Client's use materially threatens Provider's infrastructure or reputation.

5. CONFIDENTIALITY

Each party (the "Receiving Party") shall keep confidential all non-public information disclosed by the other party (the "Disclosing Party") that is designated confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure ("Confidential Information"). Provider's access to message content shall be limited to the extent necessary to provide the Services. Receiving Party shall not use Confidential Information except to perform under this Agreement and shall not disclose Confidential Information to third parties except to its employees, contractors, or advisors who have a need to know and are bound by confidentiality obligations no less restrictive than those herein.

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 Receiving Party prior to disclosure by Disclosing Party without restriction; or (c) is independently developed by the Receiving Party without reference to the Disclosing Party's Confidential Information. A Receiving Party may disclose Confidential Information to the extent compelled by law, provided it gives prompt notice to Disclosing Party and cooperates to seek protective measures.

6. SECURITY, COMPLIANCE, AND DATA HANDLING

Provider will maintain commercially reasonable technical and organizational measures to protect the Services and any data processed in connection with the Services. Provider will implement controls appropriate to industry practices for relay services including, but not limited to, TLS in transit, authenticated relay credentials, monitoring for abuse, and reasonable patch management. Client is solely responsible for the content of messages and for ensuring that messages comply with applicable laws, anti-spam laws, and acceptable use policies. Provider reserves the right to suspend or block messages that pose a threat to infrastructure, violate acceptable use, or generate volume or behavior patterns that materially harm Provider's reputation.

7. LIMITATIONS OF LIABILITY AND INDEMNITY

EXCEPT FOR A PARTY'S WILLFUL MISCONDUCT OR GROSS NEGLIGENCE, NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES ARISING OUT OF OR RELATED TO THIS AGREEMENT, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. EACH PARTY'S AGGREGATE LIABILITY UNDER THIS AGREEMENT SHALL NOT EXCEED THE TOTAL FEES PAID OR PAYABLE TO PROVIDER UNDER THIS AGREEMENT DURING THE THREE MONTHS PRECEDING THE EVENT GIVING RISE TO LIABILITY.

Client shall indemnify, defend, and hold Provider harmless from and against any third-party claims, liabilities, damages, and expenses arising from Client's content, Client's violation of applicable law, or Client's breach of this Agreement. Provider shall indemnify Client for third-party claims arising from Provider's gross negligence or willful misconduct in performing the Services.

8. 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. Venue for any dispute arising under this Agreement shall be in the state or federal courts located within the same state unless the parties agree otherwise in writing.

9. ENTIRE AGREEMENT

This Agreement, including any attachments and the Scope of Work, constitutes the entire agreement between the parties regarding its subject matter and supersedes all prior and contemporaneous agreements, proposals, and communications, whether written or oral. Any amendment or modification of this Agreement must be in writing and signed by authorized representatives of both parties.

10. MISCELLANEOUS

If any provision of this Agreement is held invalid or unenforceable, the remaining provisions will remain in full force and effect. Neither party may assign this Agreement without the prior written consent of the other party, except that Provider may assign to an affiliate or in connection with a merger or sale of substantially all assets so long as the assignee assumes Provider's obligations hereunder.

PARTY CONTACT INFORMATION

Client Printed Name:

By:

Title:

Date:

Provider Printed Name:

By:

Title:

Date:

Enter text✕

What a Business Email Relay Contract Is and When It Applies

A Business Email Relay Contract is a written agreement that defines how an organization routes, forwards, and delivers business email on behalf of another party, including authorized relay servers, security controls, and service boundaries. It documents responsibilities for message handling, authentication methods (SPF, DKIM, DMARC), data retention, liability allocation, and procedures for incidents and abuse. The contract is used between hosting providers, managed service vendors, cloud email vendors, and enterprise IT teams to reduce delivery failures, protect recipient data, and establish service-level expectations for routed messages.

Why a Clear Relay Agreement Matters for Business Email

A formal Business Email Relay Contract clarifies who controls routing, which security measures apply, and how incidents are handled, reducing delivery disruption, compliance exposure, and operational disputes.

Why a Clear Relay Agreement Matters for Business Email

Who Typically Drafts or Signs This Contract

Organizations that rely on third-party mail relays or outsource email infrastructure commonly use this contract to set technical and legal expectations.

  • Managed service providers and SMTP relay vendors responsible for outbound delivery and abuse handling
  • Enterprise IT and security teams that operate hybrid mail flows, business-critical notifications, or transactional email
  • Legal, procurement, and compliance personnel who need clear liability, data handling, and SLAs

The agreement also helps compliance, security, and procurement teams document responsibilities and maintain audit-ready records.

Step-by-step: Preparing and Finalizing the Relay Contract

Follow these steps to draft, verify, and execute a Business Email Relay Contract efficiently and with clear compliance controls.

  • 01
    Draft terms: Define scope, IPs, authentication and SLAs.
  • 02
    Technical review: Confirm DNS and mail-flow details with operations.
  • 03
    Legal review: Check liability, indemnities, and governing law.
  • 04
    Execute: Sign and distribute executed copies to stakeholders.

Typical Digital Workflow Settings for Online Completion

Configure the document workflow to reduce signer friction while preserving security and auditability for the relay agreement.

Field Configuration
Authentication Email link or SMS code for routine signers
Advanced Auth Use KBA or SSO for high-risk signers
Document Format Use PDF/A for long-term archives
Audit Trail Capture IP, timestamp, and signer actions

End-to-end Process: From Draft to Enforced Routing

A relay contract follows a predictable operational path: define, test, authorize, and monitor. Make each handoff explicit to reduce outages.

  • Define Scope: Identify mailflows, sender domains, and allowed relays.
  • Authorize: Update DNS records, SPF, and DKIM for approved relays.
  • Test: Send test messages and verify delivery and headers.
  • Monitor: Track bounce rates, abuse reports, and DMARC reports.

Technical and Platform Considerations for eSubmission

Choose file formats, integrations, and signer authentication aligned with your security and compliance policies.

  • Supported Formats: PDF, DOCX, HTML, and editable templates
  • Integrations: Salesforce, NetSuite, Google Workspace integrations
  • Authentication: Email, SMS, SSO, or KBA available

eSignature Vendor Pricing and Core Features for Relay Contracts

Basic pricing and feature dimensions for common eSignature providers. signNow appears first per vendor comparison rules; verify plan details with each vendor before purchase.

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 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

Security, Encryption, and Compliance Essentials

In-transit: TLS 1.2/1.3
At-rest: AES-256 encryption
Certifications: SOC 2 Type II
Regulatory: ESIGN and UETA
HIPAA: BAA required
21 CFR: 21 CFR Part 11 supported

Timing and Typical Deadlines to Track

Key dates for related compliance and reporting should be recorded alongside the contract effective date to ensure timely actions.

W-9 Provision:

Provide W-9 upon payer request to avoid backup withholding

1099-NEC Filing:

Recipient and IRS due Jan 31 each year

1099-MISC Paper:

Paper filing to IRS due Feb 28

1099-MISC Electronic:

Electronic filing to IRS due Mar 31

Form 1040:

Individual return due Apr 15 (Oct 15 extension available)

Key Milestones: Draft, Test, Approve, Activate

A sequential milestone view clarifies responsibilities and target dates from initial draft to active routing.

01

Draft Agreement

Legal and technical teams prepare terms and technical appendices.

02

Technical Testing

Verify DNS, DKIM, and SPF in a staging environment.

03

Approvals

Obtain sign-offs from security, legal, and operations.

04

Activate Relay

Update DNS and monitor live traffic for issues.

Common Preparation Errors and Operational Pitfalls

  • Using informal email instructions instead of a written contract, leaving technical details ambiguous and causing misrouted messages or disputes.
  • Failing to list or test all relay IP addresses, which leads to unexpected bouncebacks and difficulty tracing delivery failures.
  • Omitting authentication requirements (SPF, DKIM, DMARC) or accepting weak policies, increasing spoofing and phishing risk for sender domains.
  • Neglecting retention and audit logging obligations, leaving the parties unable to investigate incidents or satisfy compliance audits.

Potential Legal and Financial Consequences

Delivery Interruptions: Operational downtime
Data Exposure: Breach notification risk
Regulatory Fines: HIPAA penalties possible
Contract Claims: Indemnity and damages
Tax Impact: Backup withholding risk
Reputational Harm: Brand trust loss

Essential Contract Sections to Include

A professional Business Email Relay Contract includes clear, standalone sections for operational, security, and legal obligations so each party knows its duties.

Parties

Identify legal entities, contact information, and authorized signatories with exact legal names and addresses.

Scope of Service

Define allowed senders, relay IPs, throughput limits, message types, and excluded uses such as bulk marketing unless separately authorized.

Authentication & Security

Specify required SPF/DKIM/DMARC policies, TLS requirements, incident reporting timelines, and responsibilities for abuse mitigation.

Service Levels

Set measurable SLAs for delivery success rates, support response times, and escalation procedures for outages.

Liability & Indemnity

Allocate responsibility for third-party claims, data breaches, and regulatory fines with defined monetary caps where appropriate.

Termination & Transition

Include termination triggers, notice periods, and transition assistance for returning or securely deleting routed message logs.

Practical Tips for Accurate and Efficient Completion

Adopt consistent internal procedures to accelerate review and reduce errors when preparing or accepting relay agreements.

Use a technical appendix
Attach DNS records, IP lists, and signing selector details as an appendix to avoid misinterpretation in the core contract.
Standardize signature workflow
Use an eSignature solution that captures audit trails, supports required authentication, and preserves an immutable record for audits.
Align retention rules
Set retention periods in the contract that meet IRS, HIPAA, and other applicable regulators to avoid conflicts.
Schedule periodic reviews
Revalidate relay IPs, DKIM selectors, and SLAs at least annually or after major platform changes.

Real-world Examples of Relay Contracts in Use

These condensed examples show how organizations use relay agreements to control routing and assure recipients of message provenance.

Optica Ventures (Small Business)

Optica Ventures standardized relay terms to reduce support tickets and delivery failures.

  • Technical appendix listed exact relay IPs and SPF changes.
  • Brian Fitzgibbons reported that a simpler interface and clearer routing rules made it easier for customers and the internal team to manage email flows.

Martin Properties (Real Estate)

A property management firm outsourced transactional notifications to a mail relay vendor.

  • They required DKIM signing and a defined DMARC enforcement level.
  • Tim Martin described processing and executing documents online with compliance and security controls in place to protect tenant communications.

Frequently Asked Questions and Troubleshooting

Answers to common legal, technical, and administrative questions encountered when preparing or executing a Business Email Relay Contract.


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