Are electronic signatures valid?

Yes. Under the ESIGN Act (15 U.S.C. ch. 96, 2000) and UETA where adopted, electronic signatures that show intent and attribution are enforceable. Ensure consent, intent, signer attribution, and reliable record retention to meet the ESIGN legal test.

When is notarization required?

Most business service agreements do not require notarization. Notarization is situation-dependent—real estate conveyances and some state-specific filings may require a notary or witnesses. Confirm with state law if the agreement conveys real property or requires an acknowledged signature.

What if a signatory lacks authority?

If a signer lacks authority, the agreement may be voidable. Maintain a corporate resolution or delegation of authority and verify signer titles before execution to reduce the risk of challenge.

Can I amend after signing?

Yes, by mutual written amendment. Amendments should reference the original agreement, include an effective date, and be signed by authorized parties. Track versions and retain signed amendment copies with the original agreement.

How to revoke or cancel an agreement?

Follow termination provisions in the agreement. For immediate suspension, document reasons and send notice per the contract’s notice clause. Preserve evidence of notice and related communications for dispute resolution.

Can I use signNow for execution?

Yes. Platforms that meet ESIGN and UETA requirements and provide an audit trail can be used to execute agreements. For HIPAA-regulated agreements request a BAA; for high-assurance needs choose stronger signer authentication and tamper-evident signed PDFs.

Electronic Signature
Templates
Miscellaneous
Business Function Agreement

Business Function Agreement

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

Business Function Agreement

This Business Function Agreement ("Agreement") is made effective as of Effective Date: by and between:

Provider Name: Provider Address: Client Name: Client Address:

Recitals

WHEREAS, Provider is in the business of planning, managing and executing business functions, including but not limited to venue coordination, catering oversight, logistics and on-site management; and

WHEREAS, Client desires to retain Provider to perform certain services in connection with Client's business function described in this Agreement, and Provider agrees to perform such services under the terms and conditions set forth below; and

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

Scope of Work

Services to be Provided (Scope of Work):

Provider shall perform the services described above in a professional and workmanlike manner in accordance with industry standards. Any material changes to the Scope of Work shall be documented in a written amendment signed by both parties.

Payment Terms

Total Fee: Payment Schedule: Deposit Required: Late Payment Fee:

All sums due under this Agreement shall be paid in U.S. dollars. Client shall reimburse Provider for all reasonable, pre‑approved out‑of‑pocket expenses incurred in connection with the performance of the services. Overdue payments shall accrue interest at the rate set forth in the Late Payment Fee above and Provider may suspend performance for unpaid amounts after providing ten (10) days' written notice.

Term and Termination

This Agreement shall commence on Start Date: and shall terminate on End Date: unless earlier terminated in accordance with this section.

Termination Notice Period (days):

Either party may terminate this Agreement for material breach by the other party if the breaching party fails to cure such breach within the notice period specified above. Termination shall not relieve Client of its obligation to pay amounts due for services performed through the effective date of termination, nor shall it affect rights or obligations that by their nature survive termination.

Confidentiality

"Confidential Information" means any non‑public information disclosed by either party to the other, whether oral, written or electronic, relating to business affairs, financial information, technical data, client lists, pricing, or trade secrets. Each party agrees to (i) hold Confidential Information in strict confidence, (ii) use Confidential Information solely for performance of this Agreement, and (iii) not disclose Confidential Information to third parties except to employees, contractors or agents who have a need to know and who are bound by confidentiality obligations at least as protective as those herein. The foregoing shall not restrict disclosure required by law, provided the receiving party gives prompt written notice and cooperates reasonably with any lawful effort to limit disclosure. Confidentiality obligations shall survive termination for a period of three (3) years, or for trade secrets for as long as such information qualifies as a trade secret under applicable law.

Indemnification

Each party shall indemnify, defend and hold harmless the other party and its officers, directors and employees from and against any claims, liabilities, losses or expenses (including reasonable attorneys' fees) arising out of the indemnifying party's gross negligence or willful misconduct in connection with performance of this Agreement.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflicts of law principles. Exclusive venue for any litigation arising under this Agreement shall lie in the courts located in that State.

Entire Agreement; Amendments

This Agreement, together with any exhibits or written amendments executed by both parties, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, understandings, and agreements. No modification, waiver or amendment of any provision of this Agreement shall be effective unless in writing and signed by authorized representatives of 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 obligations under this Agreement without the prior written consent of the other, except to an affiliate or in connection with a merger or sale of substantially all assets, provided the assignee assumes the assigning party's obligations. Notices shall be in writing and delivered to the address set forth above or such other address as a party designates in writing.

Provider Printed Name:

By:

Date:

Client Printed Name:

By:

Date:

What a Business Function Agreement Covers

A Business Function Agreement is a written contract that defines the scope, responsibilities, and performance expectations between parties responsible for a discrete business function or service. Typical topics include deliverables, service levels, data handling, confidentiality, intellectual property assignment, payment terms, and dispute resolution. These agreements are used for internal cross-functional arrangements, outsourcing of operational tasks, vendor-provided business services, and shared-service center relationships. Properly executed, the agreement clarifies obligations, reduces operational risk, and preserves evidence of intent and authorization for commercial and regulatory review.

Why documenting the business function matters

A clear Business Function Agreement reduces ambiguity about responsibilities, protects confidential and regulated data, and creates an enforceable record of commercial terms across departments or with third parties.

Who typically prepares and signs this agreement

Each signatory should have documented authority to bind their organization or business unit; confirm signing authority before execution to avoid later disputes.

Business Operations teams: Draft scope, SLAs, and resourcing expectations; coordinate with finance for cost allocation and with legal for risk clauses.
Legal and Compliance: Review indemnities, data protections, and regulatory clauses such as HIPAA or industry-specific requirements; advise on enforceability.
Finance and Procurement: Approve payment terms, budgeting, and vendor onboarding requirements; maintain records for audit and tax purposes.

Who can sign and in what capacity

Authorized Signatory

A corporate officer or delegate with board- or charter-granted authority who can bind the organization to commercial obligations. The signatory should be listed with job title, contact details, and a corporate resolution or delegation of authority on file where required.

Functional Owner

A manager or director responsible for operational performance who signs for acceptance of deliverables and service-level reporting. Their signature may be limited to operational approvals and require a separate executive signature for financial commitments.

Core elements to include in a Business Function Agreement

A well-structured agreement reduces interpretation disputes and supports enforcement. Include the following elements to make the document complete and actionable.

Scope of Work

Clearly list tasks, deliverables, and exclusions. Attach a schedule or statement of work with measurable acceptance criteria and version control to avoid ambiguity.

Service Levels

Define performance metrics, uptime or processing targets, reporting cadence, remedies for missed SLAs, and escalation paths for persistent failures.

Data Handling

Specify data classification, permitted use, encryption, retention, breach notification obligations, and whether a Business Associate Agreement is required for HIPAA-regulated data.

Payment Terms

State fees, invoicing frequency, billing contacts, late payment interest, and any cost-recovery for additional services outside the agreed scope.

Intellectual Property

Allocate ownership of work product, license grants, and any restrictions on use or transfer of underlying IP and confidential information.

Termination Rights

Describe termination for convenience and cause, notice periods, transition assistance, and obligations for return or destruction of materials.

Information fields to capture for compliance and audits

Parties: Full legal names

Effective Date: MM/DD/YYYY

Scope Identifier: Statement of work ID

Data Classification: e.g., PHI, Confidential

Signatory Title: Role and authority

Retention Period: Record retention term

Step-by-step: completing the Business Function Agreement

Follow these sequential steps to prepare, review, and execute the agreement with clear accountability and audit-ready records.

01

Draft: Draft scope, deliverables, and key clauses with numbered exhibits.
02

Review: Legal and compliance review for regulatory, IP, and indemnity concerns.
03

Approve: Obtain finance and executive sign-off for budgetary commitments.
04

Execute: Obtain signatures and retain a final signed copy in records.

Typical routing and approval flow for this agreement

A standard routing sequence ensures the right reviewers see the document and that execution is recorded with an audit trail.

Originator: Uploads draft and assigns initial approvers.
Legal Review: Checks clauses, risk, and compliance.
Finance Approval: Confirms budget and payment terms.
Final Execution: Authorized signer applies signature and date.

Recommended digital workflow settings

Set up the online workflow to capture required fields, authentication, and retention metadata consistently.

Field	Configuration
Signature Type	Simple e-sign with audit trail
Authentication	Email link or SMS code
Conditional Fields	Show finance fields after approval
Retention Metadata	Auto-tag with effective date

Digital delivery and platform considerations

Ensure the platform can produce a tamper-evident signed PDF and export audit logs for compliance and internal audit needs.

Integrations: Salesforce, NetSuite, Microsoft 365
Formats: PDF, DOCX, HTML
Security: AES-256 at rest; TLS 1.2/1.3

eSignature vendor pricing and capability snapshot

Compare basic pricing and key capabilities relevant to executing Business Function Agreements. signNow is listed first per standard comparison format.

	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, no card	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

Common preparation errors to avoid

Ambiguous scope descriptions that omit measurable acceptance criteria, resulting in disputes and costly change orders.
Mismatched party names or incorrect legal entity names that complicate enforceability and tax reporting requirements.
Missing signature authority evidence, such as lack of a delegation of authority or corporate resolution, which can invalidate the signature.
Failure to address regulated data handling (e.g., PHI) or to attach a required Business Associate Agreement, exposing parties to compliance risk.

Risks and consequences of incorrect or incomplete agreements

Contract Disputes: Ambiguity can lead to litigation and financial exposure.

Regulatory Fines: Noncompliance with HIPAA or SEC rules may incur penalties.

Tax Impact: Incorrect filings or missing clauses can trigger IRS scrutiny.

Operational Disruption: Undefined responsibilities can cause service failures.

Reputational Harm: Data breaches or missed obligations damage trust.

Invalid Signatures: Improper execution can render the agreement unenforceable.

Real-world examples of Business Function Agreements

These case summaries illustrate how organizations use Business Function Agreements to formalize operational responsibilities.

Optica Ventures

The finance team standardized a shared-services agreement to centralize billing

Reduced interdepartmental billing disputes by 60%
The template included SLAs and data tagging that supported audit requests and sped reconciliation.

Fertility Centers

A healthcare operator added HIPAA addenda and a BAA for vendor handling PHI

Required additional security controls and breach notification language
The agreement ensured regulatory alignment and clarified incident response duties between parties.

FAQs and troubleshooting for completing the agreement

Answers to common questions about signing, enforceability, and digital execution of Business Function Agreements.

Need help? Contact support

Are electronic signatures valid?
Yes. Under the ESIGN Act (15 U.S.C. ch. 96, 2000) and UETA where adopted, electronic signatures that show intent and attribution are enforceable. Ensure consent, intent, signer attribution, and reliable record retention to meet the ESIGN legal test.
When is notarization required?
Most business service agreements do not require notarization. Notarization is situation-dependent—real estate conveyances and some state-specific filings may require a notary or witnesses. Confirm with state law if the agreement conveys real property or requires an acknowledged signature.
What if a signatory lacks authority?
If a signer lacks authority, the agreement may be voidable. Maintain a corporate resolution or delegation of authority and verify signer titles before execution to reduce the risk of challenge.
Can I amend after signing?
Yes, by mutual written amendment. Amendments should reference the original agreement, include an effective date, and be signed by authorized parties. Track versions and retain signed amendment copies with the original agreement.
How to revoke or cancel an agreement?
Follow termination provisions in the agreement. For immediate suspension, document reasons and send notice per the contract’s notice clause. Preserve evidence of notice and related communications for dispute resolution.
Can I use signNow for execution?
Yes. Platforms that meet ESIGN and UETA requirements and provide an audit trail can be used to execute agreements. For HIPAA-regulated agreements request a BAA; for high-assurance needs choose stronger signer authentication and tamper-evident signed PDFs.

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