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Business No Agency Document

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BUSINESS NO AGENCY AGREEMENT

This Business No Agency Agreement (the Agreement) is entered into as of by and between:

Party A - Business Name:    Entity Type: Corporation LLC Other

Party B - Business Name:    Entity Type: Corporation LLC Other

RECITALS

WHEREAS, Party A is engaged in the business identified above and requires certain services to be performed by Party B under the terms set forth in this Agreement; and

WHEREAS, Party B has represented to Party A that Party B has the capability and expertise to perform the services described in this Agreement; and

WHEREAS, the parties expressly agree that Party B shall perform services only as an independent contractor and not as an agent, employee, partner or joint venturer of Party A; accordingly, the parties desire to memorialize their agreement that no agency relationship is created by this Agreement.

SCOPE OF WORK

Party B shall perform the services described below. The description constitutes the agreed scope; any material changes shall require prior written amendment signed by both parties.

PAYMENT TERMS

Party A shall pay Party B the fees set forth below in consideration for the services rendered. Fees exclude applicable taxes unless otherwise stated.

If any undisputed amount due is not paid within days after the due date, Party A shall pay interest at the rate of on the outstanding balance, compounded monthly, or the maximum rate permitted by law, whichever is lower.

TERM AND TERMINATION

This Agreement shall commence on and shall remain in effect until unless earlier terminated in accordance with this Agreement.

Either party may terminate this Agreement for convenience upon days' prior written notice to the other party. Either party may terminate for material breach if the breach is not cured within days after receipt of written notice specifying the breach.

CONFIDENTIALITY

Each party (the Receiving Party) shall hold in strict confidence and shall not use or disclose to any third party any Confidential Information of the other party (the Disclosing Party) except as necessary to perform obligations under this Agreement. "Confidential Information" includes non-public business, financial, technical and customer information disclosed in any form. Confidential Information does not include information that: (a) is or becomes generally available to the public through no fault of the Receiving Party; (b) was rightfully known by the Receiving Party prior to disclosure; (c) is independently developed by the Receiving Party without use of or reference to the Disclosing Party's Confidential Information; or (d) is required to be disclosed by law, provided that the Receiving Party gives prompt written notice to the Disclosing Party and cooperates in any efforts to limit disclosure.

NO AGENCY; INDEPENDENT CONTRACTOR

The parties expressly acknowledge and agree that nothing in this Agreement creates an agency, partnership, employment or joint venture relationship between the parties. Party B has no authority to enter into contracts or agreements on behalf of Party A, bind Party A, or incur obligations or liabilities in the name of or on behalf of Party A. Party B shall perform its obligations as an independent contractor and shall be solely responsible for all taxes, withholding, benefits and insurance related to its personnel.

INDEMNIFICATION

Each party shall indemnify, defend and hold harmless the other party from and against any and all losses, liabilities, damages, costs and expenses (including reasonable attorneys' fees) arising out of third-party claims resulting from the indemnifying party's breach of this Agreement, negligence, willful misconduct, or violation of applicable law.

NOTICES

All notices, requests and other communications required or permitted under this Agreement shall be in writing and delivered to the addresses set forth below or such other address as a party may designate by written notice to the other party.

GOVERNING LAW; ENTIRE AGREEMENT

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. This Agreement, including all exhibits and attachments, constitutes the entire agreement between the parties with respect to its subject matter and supersedes all prior and contemporaneous agreements, understandings and negotiations, whether written or oral. Any amendment or modification must be in writing signed by both parties.

SEVERABILITY

If any provision of this Agreement is held to be invalid, illegal or unenforceable, the remaining provisions shall continue in full force and effect to the fullest extent permitted by law.

Party A:

By:

Date:

Party B:

By:

Date:

Enter text✕

What the Business No Agency Document Is and when it applies

Business No Agency Document is a formal written declaration used by a business to state that a specified relationship does not create an agency between the parties. It clarifies that one party will not act as an agent or representative authorized to bind the other in contracts, financial obligations, or legal commitments. The document typically identifies the parties, describes the scope of permitted interactions, and records signatures and dates. Organizations use it to prevent misunderstandings, limit liability, and establish the correct legal relationship for transactions, vendor engagements, and contractor arrangements.

Why include a Business No Agency Document in your agreements

Use this document to set expectations, prevent unintended authority, and reduce exposure to third-party claims. A clear written statement that no agency exists supports contractual interpretation and can be persuasive evidence in disputes, regulatory reviews, or insurance coverage questions.

Why include a Business No Agency Document in your agreements

Who typically prepares or signs this document

Businesses, vendors, independent contractors, procurement teams, and in-house counsel commonly use this document to confirm that one party is not an agent of another.

  • Small-business owners protecting against implied authority in vendor or reseller relationships.
  • Contract managers documenting contractor roles and limits for procurement and project work.
  • Legal departments creating evidence for contract interpretation and dispute prevention.

Pair this document with engagement letters, statements of work, or vendor agreements to make relationship boundaries explicit and reduce downstream conflict.

Core components to include for a professionally drafted Business No Agency Document

Core elements ensure clarity and legal standing: parties, explicit non-agency clause, permitted activities, signing block, notices, retention provisions, and dispute resolution.

Parties

Identify each party with full legal name and organizational form. Include registration jurisdiction and taxpayer identification where relevant to avoid identity confusion in enforcement or tax reporting.

Non-Agency Clause

A concise, unambiguous clause stating that no agency, partnership, joint venture, employment relationship, or third-party authority to bind another party exists unless explicitly agreed in a separate written instrument signed by both parties.

Scope

Detail permitted communications, approvals, operational activities, and any financial or contractual actions. Explicitly list actions requiring separate written authorization to create any binding obligations or liabilities between parties.

Signatures

Provide signature lines, printed names, titles, dates, and capacity statements for corporate signers. Consider notary or witness blocks when state law or contract requires verification.

Notarization

State whether notarization or witness signatures are required and provide space for acknowledgements. Indicate whether remote notarization is permitted, the recording retention, and the county and state of execution as applicable.

Notices

Include notice delivery methods, addresses for service, and timing for deemed receipt. Specify email addresses and physical addresses for legal notices and change procedures, and describe any consent to electronic delivery.

Step-by-step: complete and execute the document

Follow these sequential steps to complete, sign, and record a Business No Agency Document so the non-agency relationship is clear and enforceable.

  • 01
    Identify Parties: List legal names and business entities exactly as registered.
  • 02
    Define Scope: Describe permitted interactions and explicitly deny agency or authority.
  • 03
    Signatures: Include signature blocks for authorized signers with printed names and dates.
  • 04
    Record Retention: Save executed copies and evidence of delivery or notarization where applicable.

Configure an online workflow for the Business No Agency Document

Configure an online workflow with fields, authentication, reminders, and retention settings before sending the Business No Agency Document.

Field Configuration
Signature Auth Email link with optional SMS or SSO verification.
Conditional Fields Use conditional visibility to show relevant clauses only.
Bulk Send Deploy identical documents to many signers with personalized fields.
Audit Trail Capture timestamps, IP addresses, and signer actions in certificate.

Technical considerations for electronic signing and storage

Electronic filing and signing require platform compatibility with PDF, DOCX, and common cloud storage providers; confirm integrations and authentication methods.

  • File Formats: PDF, Word DOCX, and HTML supported.
  • Integrations: Salesforce, NetSuite, Microsoft 365, Google Workspace.
  • Authentication: Email, SMS code, KBA, SSO options.

Where to send and file executed copies

After execution, send copies to all parties, retain a company file copy, and deliver to any required registries or third parties per contract.

  • Send to Parties: Email signed PDF and Certificate of Completion.
  • Company Records: Store executed copy in corporate contract repository.
  • Register/Record: File with local registry if required by law.
  • Third Parties: Provide copies to insurers, banks, or vendors as applicable.

Key risks and potential consequences of errors

Misrepresentation: Potential contract voiding risk.
Liability Exposure: Third-party claims and damages.
Tax Consequences: Incorrect reporting or withholding.
Regulatory Review: Increased audit scrutiny.
Insurance Denial: Coverage disputes possible.
Enforcement Costs: Litigation and counsel fees.

Common mistakes that undermine the document

  • Ambiguous language that fails to deny agency often leads courts to examine conduct and factual relationships, increasing litigation cost and undermining the document's protective intent.
  • Using trade names or abbreviations instead of registered legal entity names causes identity mismatches with formation records and may invalidate the non-agency assertion.
  • Failing to define what actions require separate authorization can unintentionally grant implied authority, especially when operational processes include approvals or contract execution.
  • Omitting signature capacities or notary information may complicate enforcement and evidence collection, particularly for cross-jurisdictional disputes or third-party reliance claims.

eSignature vendor pricing and capability comparison relevant to this document

Compare baseline eSignature features and pricing commonly relevant when managing Business No Agency Documents at scale.

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

Examples: practical use of Business No Agency Documents

Real-world examples show how digital execution reduces ambiguity and speeds processing across industries in practice.

Martin Properties

Tim Martin used an online non-agency declaration to process property management contracts without in-person meetings, improving turnaround and recordkeeping.

  • Signed on mobile with audit trail.
  • The digital form included explicit non-agency language, recorded signer identity and timestamps, and eliminated follow-up disputes over authority; the company retained copies for compliance and reduced administrative labor.

BIS

BIS adopted an electronic non-agency declaration within procurement workflows to ensure contracts did not inadvertently create agent relationships while preserving audit trails for compliance.

  • Added auditable logs and SOC 2 controls.
  • The company reported faster contract review cycles and clearer evidence in disputes; legal and procurement teams could rely on signed records that met ESIGN/UETA standards, reducing time spent on manual verification or supplemental attestations.

Who is authorized to sign and how to document authority

Corporate Officer

A duly authorized corporate officer may sign on behalf of the business if corporate resolutions or bylaws grant authority. The signer should include title and a capacity statement; attach evidence of authorization when the counterparty requests verification.

Procurement Manager

A procurement manager may sign limited operational confirmations if delegated authority is documented in procurement policy or an internal delegation letter. Clearly state the limits of authority in the Business No Agency Document to prevent implied binding actions beyond procurement approvals.

Common questions about completing and enforcing a Business No Agency Document

Frequently asked questions about completing, signing, and enforcing a Business No Agency Document, including eSignature and notarization concerns.


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