Are electronic signatures legally valid?

Yes. Electronic signatures are enforceable under the federal ESIGN Act (15 U.S.C. §7001) and state UETA rules when intent, consent, attribution, and reliable record retention are satisfied; exceptions like wills and certain court filings may still require wet signatures.

Which fields are essential to include?

Essential fields include full legal names, entity types, effective date (MM/DD/YYYY), detailed manager authority, compensation formulas, reporting requirements, and signatures with printed name and title. Accurate TINs or EINs matter for tax withholding and payer reporting obligations.

Is notarization or witnessing required?

Not usually required for Business Management Agreements, but certain transactions or recording requirements may call for notarization or witnesses. If the agreement affects real estate interests or statutory powers, verify state statutes and notary or RON requirements before execution.

How do I ensure an electronic signature is valid?

Obtain clear signer consent to electronic records, use reliable authentication, capture a detailed audit trail (timestamp, IP, actions), and retain reproducible records. For consumer-facing matters provide the ESIGN consumer disclosure and evidence the signer could access the electronic format.

Do state laws affect electronic validity?

Yes. ESIGN governs interstate electronic transactions while state UETA statutes typically govern intrastate matters; New York applies ESRA. Review state notary, witness, and RON rules for transaction-specific requirements and statutory exceptions like wills or court filings.

How should records be retained?

Retain executed agreements according to federal minima: at least three years for tax records (IRC §6501(a)), six years for HIPAA-related records (45 CFR §164.530(j)), and longer if state law or industry rules require.

Electronic Signature
Templates
Miscellaneous
Business Management Agreements

Business Management Agreements

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

BUSINESS MANAGEMENT AGREEMENT

This Business Management Agreement (the Agreement) is entered into by and between Client Name: , with principal address:

Client Address:

and Manager Name: , with principal address:

Manager Address:

Effective Date:

Recitals

WHEREAS, Client operates a business and desires to engage Manager to provide management, consulting and administrative services to improve business operations, financial performance, and strategic planning; and

WHEREAS, Manager represents that it has the experience, qualifications, and personnel necessary to perform the services described in this Agreement and is willing to provide such services to Client on the terms set forth herein.

WHEREAS, the parties desire to set forth their respective rights and obligations with respect to such services.

Scope of Work

Services to Be Provided:

Payment Terms

Client shall pay Manager the Fees set forth below in consideration for the Services. Fees are exclusive of taxes unless otherwise agreed.

Total Management Fee (per period or project): Payment Schedule: Payment Due (net days): Late Fee for Overdue Amounts:

All payments shall be made in United States dollars, by check or electronic transfer to an account designated by Manager. Client is responsible for any collection costs, including reasonable attorneys' fees, for unpaid amounts.

Term and Termination

Term: The term of this Agreement shall commence on Start Date: and shall continue until End Date: unless earlier terminated as provided herein.

Notice Period for Termination Without Cause (days):

Termination for Cause: Either party may terminate this Agreement immediately upon written notice if the other party materially breaches any obligation under this Agreement and fails to cure such breach within thirty (30) days after receipt of written notice specifying the breach. Upon termination, Client shall pay Manager for all Services performed and reimbursable expenses incurred through the effective date of termination.

Confidentiality

Each party (the Receiving Party) shall keep confidential and shall not disclose to any third party any confidential or proprietary information of the other party (the Disclosing Party) disclosed in connection with this Agreement, except as permitted in this Agreement. Confidential Information includes but is not limited to financial data, customer lists, business plans, trade secrets, pricing, and operational procedures, whether disclosed orally, in writing, or by inspection.

The Receiving Party may disclose Confidential Information (a) to its employees, affiliates, contractors or advisors who have a need to know and who are bound by confidentiality obligations at least as protective as those set forth herein, and (b) as required by law, provided the Receiving Party gives the Disclosing Party prompt written notice of such requirement and cooperates in any lawful attempt to limit disclosure or obtain protective measures.

Confidentiality Duration (years):

Independent Contractor; Assignment

Manager is an independent contractor and nothing in this Agreement shall be construed to create an employer-employee, joint venture, partnership or agency relationship between the parties. Manager shall have no authority to bind Client except as expressly provided in writing.

Neither party may assign this Agreement or any rights hereunder without the prior written consent of the other party, except that Client may assign to an affiliate or successor by merger or sale of substantially all assets provided the assignee assumes Client's obligations under this Agreement.

Indemnification

Each party shall indemnify, defend and hold harmless the other party and its officers, directors, employees and agents from and against any third-party claims, liabilities, losses or expenses (including reasonable attorneys' fees) arising out of the indemnifying party's gross negligence, willful misconduct or material breach 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 conflict of laws principles.

Entire Agreement; Amendments

This Agreement, together with any exhibits or schedules expressly incorporated herein, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, understandings and agreements, whether written or oral. No amendment or modification shall be effective unless in writing signed by both parties.

Miscellaneous

If any provision of this Agreement is held to be invalid or unenforceable, the remainder of the 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. Headings are for convenience only and do not affect interpretation.

Additional Provisions / Notes:

Client Printed Name:

By:

Date:

Manager Printed Name:

By:

Date:

What Business Management Agreements Are

Business Management Agreements are formal contracts that define the scope, responsibilities, compensation, and performance expectations between a business owner and a manager or management firm. These agreements typically cover term length, decision-making authority, reporting obligations, confidentiality, indemnification, termination rights, and fee structures. They can allocate fiduciary duties, set performance metrics, and specify remedies for breaches. In the United States, these agreements are governed by contract law and may implicate statutes such as ESIGN and UETA when executed electronically; industry-specific rules like HIPAA can also affect content when covered information is involved.

Why a Clear Agreement Matters

Use Business Management Agreements to clarify authority, reduce disputes, and assign financial and operational responsibilities. A well-drafted agreement protects both parties, defines measurable expectations, and creates an enforceable framework for termination, compensation, and dispute resolution under applicable state contract law.

Who Typically Uses These Agreements

Business owners, management firms, and investors commonly use Business Management Agreements to formalize operating relationships and responsibilities.

Small-business owners seeking external management or day-to-day operational support services
Private equity firms appointing managers to run portfolio companies under defined KPIs
Property owners and real estate sponsors delegating asset management or leasing duties

Identify the role you represent, because who signs and which clauses apply vary by party type and regulatory context.

Core Sections to Include

Core sections of a Business Management Agreement set expectations, governance, compensation, performance metrics, confidentiality, and termination terms for clarity and enforceability.

Parties

Identify each contracting entity by legal name and entity type, include organizational addresses, and specify whether a manager acts as an employee, independent contractor, agent, or fiduciary on behalf of the principal.

Authority

Detail delegated powers, decision-making limits, financial approval thresholds, hiring/firing authority, and any required owner consent for major transactions or capital expenditures over a specified dollar amount.

Compensation

State fee structure, base management fees, incentive fees, expense reimbursement rules, payment schedule, calculation method for incentive metrics, and whether fees survive or are prorated on early termination.

Reporting

Specify frequency and format of financial and operational reports, accounting standards to apply, access to supporting documents, audit rights, and notice procedures for material variances.

Confidentiality

Define confidential information, permitted disclosures, duration of secrecy obligations, handling of personal data consistent with HIPAA when applicable, return or destruction obligations, and remedies for unauthorized disclosure.

Termination

List termination for cause and convenience, notice periods, cure periods, post-termination obligations such as transition assistance, final accounting, and survival clauses for key provisions, including confidentiality and indemnity.

Required Agreement Information at a Glance

Legal Names: Full legal names of parties

Addresses: Street, city, state, ZIP

Effective Date: Enter as MM/DD/YYYY format

Term: Length and renewal terms

Fees: Compensation, schedule, and reimbursements

Signatures: Printed name, title, dated signature

Step-by-Step: Preparing and Executing the Agreement

Follow these steps when preparing and executing a Business Management Agreement to ensure completeness, authority verification, and enforceability in electronic and paper formats.

01

Draft: Assemble clauses, payment terms, and scope of authority
02

Review: Have legal counsel or advisor review for risk and compliance
03

Authorize: Confirm signatory authority and corporate resolutions if required
04

Execute: Sign, date, and retain copies with audit trail

Setting Up an Online Signing Workflow

Configure an online workflow to collect signatures, supporting documents, and approvals while preserving audit logs and enforcing signer authentication.

Field	Configuration
Signature Order	Set sequential or parallel signing as needed
Authentication	Email link, SMS code, or KBA
Attachments	Require upload of supporting documents
Retention	Auto-save copies and audit trail retention

Platform and Security Considerations

Use platforms that support PDF, DOCX, robust audit trails, AES-256 encryption, and common integrations for record keeping and workflow automation.

File Types: PDF, DOCX, XLSX supported
Integrations: Salesforce, NetSuite, Google Workspace
Security: TLS 1.2/1.3 and AES-256

eSignature Vendor Comparison

Compare common eSignature vendor plans and features relevant to executing Business Management Agreements, focusing on price, bulk send, audit trail, and HIPAA support.

	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	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 Pitfalls

Leaving manager authority vague or undefined, which leads to disputes over decision rights and delays in approvals or capital allocation
Failing to confirm signatory authority or corporate resolutions, resulting in unenforceable signatures and potential invalidation of key clauses
Using ambiguous fee language without formulas for incentive calculations or prorations, which causes billing disagreements and audit findings
Neglecting data protection clauses and HIPAA or FERPA considerations when agreements touch protected information, exposing parties to compliance risk

Key Risks and Potential Penalties

Contract Disputes: Damages, specific performance claims

Tax Reclassification: Manager treated as employee

Withholding Risk: Incorrect TIN triggers 24% backup withholding

I-9 Violations: Penalties $281–$2,789 per violation

HIPAA Exposure: Breach fines and BAA issues

Enforceability: Invalid signature voids provisions

Typical Routing and Distribution

Typical routing for Business Management Agreements includes internal approval, signature collection, and distribution to accounting and legal teams for retention.

Upload: Add the finalized PDF to eSignature platform
Assign Fields: Place signature, date, and initial fields
Authenticate: Choose email, SMS, or KBA methods
Deliver: Send signed copies to all parties and archives

How Others Use Electronic Management Agreements

Real-world examples show how Business Management Agreements executed electronically streamline operations for portfolio managers and property owners.

Optica Ventures

Optica Ventures used electronic agreements to formalize management terms across investments, centralizing authority and reporting obligations for multiple portfolio companies.

Signatures completed remotely on mobile devices.
Brian Fitzgibbons reports the streamlined process reduced administrative follow-up and improved client turnaround times while preserving audit trails and legal compliance; the executed agreements facilitated consistent fee calculations and clearer termination processes across the portfolio.

Martin Properties

Martin Properties applied standardized management agreements for rental portfolios to govern leasing authority, rent collection, and vendor management across multiple properties.

Enables remote signatures and offline access.
Tim Martin noted that online execution preserved compliance and allowed rapid execution without in-person meetings, reducing vacancy turnaround and ensuring managers could access executed documents securely from mobile devices or offline workflows.

Practical Drafting and Execution Tips

Adopt practices that reduce ambiguity, strengthen compliance, and make management agreements robust and audit-ready for electronic execution.

Define manager authority and limits precisely

Draft explicit clauses for decision thresholds, financial approvals, and hiring authority, with dollar limits and required owner consent for major transactions. Clear definitions reduce litigation risk and streamline internal approvals and audit reviews.

Spell out compensation mechanics and payment timing

Include formulas for incentive fees, define when performance metrics are measured, specify dates for base and incentive payments, and address expense reimbursement and disputed charge resolution to avoid ambiguity and recurring reconciliation issues.

Attach exhibits, schedules, and fee tables

Make project schedules, fee tables, KPI measurement templates, and vendor lists enforceable exhibits incorporated by reference; updating exhibits should follow contract amendment procedures to preserve clarity and evidentiary value for audits or disputes.

Plan for secure document storage and controlled access

Store executed agreements in encrypted repositories, maintain tamper-evident audit logs, implement role-based access, preserve retention schedules per IRS and HIPAA where relevant, and document retrieval procedures for regulatory audits or corporate governance reviews.

FAQs: Signing, Validity, and Recordkeeping

Frequently asked questions about preparing, signing, and enforcing Business Management Agreements, with practical answers addressing legal validity, signatures, and recordkeeping.

Need help? Contact support

Are electronic signatures legally valid?
Yes. Electronic signatures are enforceable under the federal ESIGN Act (15 U.S.C. §7001) and state UETA rules when intent, consent, attribution, and reliable record retention are satisfied; exceptions like wills and certain court filings may still require wet signatures.
Which fields are essential to include?
Essential fields include full legal names, entity types, effective date (MM/DD/YYYY), detailed manager authority, compensation formulas, reporting requirements, and signatures with printed name and title. Accurate TINs or EINs matter for tax withholding and payer reporting obligations.
Is notarization or witnessing required?
Not usually required for Business Management Agreements, but certain transactions or recording requirements may call for notarization or witnesses. If the agreement affects real estate interests or statutory powers, verify state statutes and notary or RON requirements before execution.
How do I ensure an electronic signature is valid?
Obtain clear signer consent to electronic records, use reliable authentication, capture a detailed audit trail (timestamp, IP, actions), and retain reproducible records. For consumer-facing matters provide the ESIGN consumer disclosure and evidence the signer could access the electronic format.
Do state laws affect electronic validity?
Yes. ESIGN governs interstate electronic transactions while state UETA statutes typically govern intrastate matters; New York applies ESRA. Review state notary, witness, and RON rules for transaction-specific requirements and statutory exceptions like wills or court filings.
How should records be retained?
Retain executed agreements according to federal minima: at least three years for tax records (IRC §6501(a)), six years for HIPAA-related records (45 CFR §164.530(j)), and longer if state law or industry rules require.

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