What makes an electronic signature legally valid?

An e-signature meets legal standards when it shows the signer’s intent, consent to transact electronically, attribution to the signer, and the record can be retained and reproduced per 15 U.S.C. §7001 and state UETA rules.

Is notarization required for this document?

Most internal practice documents do not require notarization. If the document functions as a contractual exhibit affecting property or power-of-attorney rights, check state notary and witness rules before execution.

How should I correct a signed document?

Do not alter a signed copy. If corrections are needed, create a new revision and obtain fresh approvals and signatures, or execute a written amendment referencing the original document.

What authentication level is recommended for external signers?

Use email-plus-code or SMS authentication for most external signers; use stronger methods (KBA or advanced signer authentication) for high-risk or regulated transactions.

Can the document be executed remotely by video notarization?

Remote online notarization (RON) may be available depending on state rules; verify the state notary commission requirements and retention rules before using RON.

Where should signed documents be stored?

Store signed originals in a secure, access-controlled repository that supports retention policies and audit logs; retain for the period required by applicable regulations.

Electronic Signature
Templates
Miscellaneous
Business Practice Document

Business Practice Document

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BUSINESS PRACTICE DOCUMENT

This Business Practice Document (the "Agreement") is entered into as of by and between:

Party A Name: Party A Address:

Party B Name: Party B Address:

Recitals

WHEREAS, Party A is engaged in the business of conducting certain business practices and systems and has requested Party B to perform certain professional services in connection with those operations; and

WHEREAS, Party B represents that it possesses the expertise, personnel, and resources necessary to perform the services contemplated by this Agreement in a commercially reasonable manner; and

WHEREAS, the parties desire to set forth the terms and conditions under which Party B will perform such services and the obligations of Party A with respect thereto.

Scope of Work

Party B shall perform the services described below and any ancillary tasks reasonably necessary to accomplish the objectives set forth herein. The scope may be amended only by written agreement of the parties.

Detailed Scope of Work

Payment Terms

In consideration for the performance of the Scope of Work, Party A shall pay Party B as follows.

Total Contract Amount (USD) Payment Schedule Invoice Due Days Late Fee

All payments are due in United States Dollars unless otherwise agreed in writing. Party B shall submit invoices in accordance with the Payment Schedule. If Party A fails to timely pay any undisputed invoice, Party B may suspend performance after providing written notice and a period of ten (10) days to cure.

Term and Termination

This Agreement shall commence on the Start Date below and continue until the End Date below, unless earlier terminated in accordance with this Agreement.

Start Date: End Date:

Either party may terminate this Agreement for material breach by the other party that remains uncured thirty (30) days after written notice of such breach. In addition, either party may terminate for convenience upon written notice given days prior to termination.

Confidentiality

Each party acknowledges that in the course of performance it may receive Confidential Information of the other party. "Confidential Information" means non-public information disclosed in written, electronic, or oral form 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 receiving party shall (i) use Confidential Information solely for the performance of this Agreement, (ii) restrict disclosure to employees and agents having a need to know and who are bound by confidentiality obligations at least as protective as those herein, and (iii) exercise the same degree of care to protect Confidential Information as it would use to protect its own confidential information, but in no event less than reasonable care. The obligations in this section shall survive termination for a period of years.

Exceptions: Confidential Information does not include information that is publicly known through no breach of this Agreement, already rightfully in the receiving party’s possession, independently developed without use of the disclosing party’s Confidential Information, or required to be disclosed by law (provided the disclosing party is given prompt notice and an opportunity to seek protective measures).

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of: without regard to conflict of law principles. Venue for any dispute shall be in the courts of that jurisdiction, and the parties hereby consent to personal jurisdiction therein.

Notices

Notices under this Agreement shall be sent to the addresses set forth below or such other address as a party designates by notice. Notices shall be deemed given upon delivery by hand, confirmed electronic delivery, or three (3) days after deposit in the U.S. mail, postage prepaid.

Notice Address for Party A Notice Address for Party B

Representations and Warranties; Remedies

Each party represents and warrants that it has the full power and authority to enter into and perform this Agreement and that performance will not violate any other agreement or obligation. Except for willful misconduct or gross negligence, neither party shall be liable for indirect, incidental, special, or consequential damages. The parties’ aggregate liability for claims arising out of or relating to this Agreement shall not exceed the total fees actually paid by Party A to Party B under this Agreement.

Entire Agreement

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

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

Both parties acknowledge that they have read this Agreement, understand its terms, and agree to be bound by it.

Party A:

By:

Date:

Party B:

By:

Date:

What the Business Practice Document Is and When It’s Used

A Business Practice Document records an organization’s standard procedures, decision-making authorities, and control points for a specific operational area. It can serve as an internal policy, a customer-facing process description, or a contractual attachment that explains how tasks are performed, approvals are routed, and exceptions are managed. The document is used to ensure consistent execution, enable audits, and create a reference that legal, compliance, and operations teams can rely on when reviewing actions or resolving disputes.

Why Maintain a Business Practice Document

A clear Business Practice Document reduces ambiguity, speeds approvals, supports regulatory compliance, and documents who does what and when. It provides auditors and stakeholders an auditable record of routine processes and decision criteria without replacing written contracts.

Who Typically Prepares and Uses This Document

Organizations create Business Practice Documents when they need consistent, auditable processes across teams, projects, or client engagements.

Operations managers and process owners who define steps, inputs, outputs, and quality checks for routine activities.
Compliance and legal teams that require documented controls and versions for internal or external review.
External contractors or vendors who must follow or acknowledge the company’s procedures in contracts or statements of work.

Copies are used by operations staff, managers, auditors, and contract signatories to confirm procedures, responsibilities, and escalation paths.

Step-by-Step: Completing a Business Practice Document

Follow these sequential steps to prepare, approve, and finalize the Business Practice Document so it is auditable and enforceable.

01

Draft: Describe scope, objectives, and the step-by-step procedure.
02

Assign roles: List responsible, accountable, consulted, and informed parties.
03

Review: Circulate to legal and compliance for comments.
04

Approve and sign: Capture signatures and effective date; store a signed copy.

Frequently Asked Questions and Troubleshooting

Common questions about drafting, signing, and maintaining Business Practice Documents, with concise practical answers for each situation.

Need help? Contact support

What makes an electronic signature legally valid?
An e-signature meets legal standards when it shows the signer’s intent, consent to transact electronically, attribution to the signer, and the record can be retained and reproduced per 15 U.S.C. §7001 and state UETA rules.
Is notarization required for this document?
Most internal practice documents do not require notarization. If the document functions as a contractual exhibit affecting property or power-of-attorney rights, check state notary and witness rules before execution.
How should I correct a signed document?
Do not alter a signed copy. If corrections are needed, create a new revision and obtain fresh approvals and signatures, or execute a written amendment referencing the original document.
What authentication level is recommended for external signers?
Use email-plus-code or SMS authentication for most external signers; use stronger methods (KBA or advanced signer authentication) for high-risk or regulated transactions.
Can the document be executed remotely by video notarization?
Remote online notarization (RON) may be available depending on state rules; verify the state notary commission requirements and retention rules before using RON.
Where should signed documents be stored?
Store signed originals in a secure, access-controlled repository that supports retention policies and audit logs; retain for the period required by applicable regulations.

Core Sections to Include in a Professional Business Practice Document

A complete document organizes responsibilities, process steps, controls, escalation paths, performance measures, and version history for clarity and governance.

Scope

Defines boundaries, affected systems, and excluded activities so readers understand where the procedure applies and where separate policies govern.

Roles & Responsibilities

Identifies specific job titles and responsibilities for each step, including approval authorities and delegated signers for exceptions.

Process Steps

Presents a numbered, sequential description of tasks, inputs, outputs, and acceptance criteria so actions are repeatable and auditable.

Controls and Checks

Lists verification points, required documentation, and approval thresholds to prevent errors and support internal controls testing.

Escalation Path

Specifies how exceptions are reported, who must approve waivers, and the timeline for resolution to avoid unapproved deviations.

Version History

Documents revisions, effective dates, and approvers so auditors can trace changes and confirm the applicable procedure at any historical date.

Security and Compliance Controls to Document

Encryption in transit: TLS 1.2/1.3

Encryption at rest: AES-256

Regulatory certifications: SOC 2 Type II

Healthcare compliance: HIPAA (BAA required)

Electronic signature law: ESIGN / UETA

Information security: ISO 27001

Key Risks and Potential Penalties for Errors

Regulatory fines: Agency penalties may apply

Tax penalties: Incorrect filings trigger IRC §6721 fines

I-9 violations: Civil fines per 8 CFR §274a.2

Contract disputes: Ambiguous terms increase litigation risk

HIPAA breaches: Civil and corrective actions possible

Operational loss: Process gaps cause financial harm

Common Mistakes to Avoid When Preparing the Document

Leaving approval roles undefined, which creates delays and makes accountability unclear during audits or incidents.
Using ambiguous language for steps or thresholds, which can lead to inconsistent execution and contract disputes.
Failing to record effective dates or revision history, complicating retrospective compliance reviews and version control.
Not including authentication or notarization requirements when legal effect depends on state-specific rules or regulated contexts.

How to Configure an Electronic Workflow for This Document

Set up a repeatable routing pattern that captures required signatures, timestamps, and notifications to minimize manual follow-up.

Field	Configuration
Routing Order	Sequential or parallel signer order
Authentication	Email code, SMS, or KBA
Conditional Fields	Show/hide fields based on prior answers
Notifications	Email reminders and completion alerts

Technical Considerations for Digital Completion

Choose a platform that supports required authentication, audit trails, and export formats for recordkeeping.

File formats: PDF, DOCX supported
Integrations: Salesforce, NetSuite, Google Workspace
Access controls: SSO and role-based access

Ensure the platform retains a tamper-evident audit trail and meets any industry compliance needs, such as HIPAA BAA or 21 CFR Part 11 for regulated records.

Comparing eSignature Providers for Business Practice Documents

Basic pricing and feature availability across common eSignature vendors to inform platform selection; signNow is presented first per comparison conventions.

	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 plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

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