Is an electronic signature legally binding?

Yes. In the United States, eSignatures are enforceable under the ESIGN Act (15 U.S.C. ch. 96, 2000) and UETA in most states, provided intent, consent, attribution, and record retention requirements are met.

Do I need a notary for a pricing addendum?

Generally no for commercial pricing addenda, unless state law, the master agreement, or a specific party requires notarization. For certain property or real-estate-adjacent filings, a notary or witnesses may be required.

Can I change pricing unilaterally?

Only if the addendum includes a unilateral escalation clause with clear notice, cap, and calculation method. Otherwise, changes typically require mutual amendment and execution by authorized signatories.

What if a signer uses a different legal name?

Mismatched signer names can delay acceptance or invoice processing. Use the legal entity name and include a corporate authorization reference when an agent signs on behalf of a company.

How should I respond to invoice disputes tied to the addendum?

Follow the dispute resolution steps in the addendum: preserve documents, notify the other party within the dispute window, and follow any agreed escalation procedure before withholding payment.

Are remote online notarizations acceptable?

Many states permit RON with identity proofing and audio-video recording; requirements vary. Confirm state notary rules and retain required recordings and logs when RON is used.

Electronic Signature
Templates
Miscellaneous
Business Pricing Addendum

Business Pricing Addendum

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

BUSINESS PRICING ADDENDUM

Effective Date:

Provider Name Provider Address Client Name Client Address Related Agreement Title

RECITALS

WHEREAS, Provider and Client entered into the Related Agreement identified above and wish to set forth updated pricing, invoicing procedures, and certain additional terms governing fees for services or goods covered by that Agreement; and

WHEREAS, the parties agree that the terms of this Business Pricing Addendum (the "Addendum") shall control with respect to pricing and payment for the services or goods described in this Addendum, and shall be incorporated into and governed by the Related Agreement except as expressly modified herein.

WHEREAS, the parties desire to document itemized pricing, payment schedule, and other commercial terms to be effective as of the Effective Date above.

SCOPE OF WORK

The Scope of Work describes the services, deliverables, or goods to which the pricing in this Addendum applies. Any material changes to the scope that affect price or schedule shall be documented in a written change order signed by both parties.

ITEMIZED PRICING

Provide item descriptions, quantities and unit pricing. Totals will be used for invoicing unless otherwise agreed.

Item 1 — Description

Item 2 — Description

Item 3 — Description

Total Contract Price

PAYMENT TERMS

Payment shall be made in accordance with the schedule below. Unless otherwise stated, invoices shall be due and payable within the number of days indicated.

Payment Schedule / Milestones Invoice Payment Terms

Late Payment: Late payments shall accrue interest at on overdue amounts, or the maximum rate permitted by law, whichever is lower.

Taxes and Withholding: Unless otherwise stated, Client shall be responsible for all sales, use, excise, value-added and similar taxes imposed on the transactions reflected in this Addendum. Provider shall invoice applicable taxes separately.

TERM AND TERMINATION

This Addendum commences on the Start Date: and shall terminate on the End Date: unless earlier terminated in accordance with this section.

Either party may terminate this Addendum for convenience upon days' prior written notice to the other party. Termination for cause may be effected immediately where the other party materially breaches any payment or confidentiality obligation and fails to cure within 15 days of written notice.

CONFIDENTIALITY

Each party shall maintain in confidence all Confidential Information disclosed by the other party in connection with this Addendum. Confidential Information shall not be disclosed or used except to perform obligations under this Addendum or as required by law. The obligations of confidentiality survive termination for years following termination.

GOVERNING LAW

This Addendum shall be governed by and construed in accordance with the laws of the jurisdiction of without regard to its conflict of laws principles. Venue for any dispute shall be located in the courts of that jurisdiction unless the parties agree in writing otherwise.

ENTIRE AGREEMENT

This Addendum, together with the Related Agreement and any written change orders executed by both parties, constitutes the entire agreement between the parties with respect to pricing and payment for the services or goods described herein. In the event of any conflict between this Addendum and the Related Agreement, the terms of this Addendum control solely with respect to pricing and payment, to the extent of such conflict.

No waiver or modification of this Addendum shall be effective unless in writing and signed by authorized representatives of both parties.

Provider:

By:

Date:

Client:

By:

Date:

What the Business Pricing Addendum Is

A Business Pricing Addendum is a contract attachment that records pricing terms, billing mechanics, and adjustment methods tied to a core agreement. It sets unit prices, discounts, escalation formulas, invoicing cadence, taxes, and payment remedies so both parties have a single reference for fees and changes. The addendum typically specifies effective and expiration dates, renewal or amendment procedures, audit rights, and confidentiality for pricing data. When drafted clearly, it reduces billing disputes, supports procurement reviews, and integrates with invoice and revenue recognition workflows.

Why use a Business Pricing Addendum

A focused addendum separates commercial pricing from legal terms so price updates, audits, and billing rules can be changed or referenced without reopening the entire contract. It clarifies invoicing, tax allocation, and adjustment triggers, lowering dispute risk and improving financial forecasting.

Who typically prepares and signs this addendum

The addendum is used by individuals and teams responsible for contracts, finance, and vendor relationships across both buyer and seller organizations.

Procurement and sourcing teams who manage vendor price schedules and contract compliance.
Finance and accounts payable teams that need clear invoicing rules and tax allocation.
Sales, account management, or vendor legal teams that approve discounts and escalation clauses.

Parties that finalize pricing terms should ensure authorized signatories execute the addendum and that copies are retained with the master agreement for audit and compliance.

Typical signatories and their perspective

Procurement Lead

A procurement lead reviews pricing structures, authorized discounts, and renewal notice periods to ensure the addendum aligns with purchasing policies and budget constraints.

VP Finance

The VP of Finance verifies invoicing cadence, tax treatment, and audit access so revenue and payables are recorded correctly and internal controls are preserved.

Core sections to include in a professional addendum

A complete Pricing Addendum groups price elements into clear sections so each side can locate billing rules quickly and apply them consistently.

Price Table

Structured unit pricing by SKU or service line, with effective dates, currency, and any volume discounts or tiered rates to remove ambiguity at invoice time.

Adjustment Rules

Formulae for escalations, index-based increases, and mid-term price adjustments, including notice periods and maximum annual percentage increases where applicable.

Billing Mechanics

Invoicing cadence, billing contact, accepted payment methods, late fee rates, and procedures for disputed invoices to streamline AR/AP processing.

Taxes & Fees

Allocation of sales tax, VAT, withholding tax responsibility, and who bears compliance costs for tax assessments or changes in tax law.

Audit and Records

Rights to audit usage or invoices, scope, notice period, sample size, confidentiality protections, and retention expectations for supporting documentation.

Termination Pricing

Pricing or refund mechanics on early termination, prorations, final settlement obligations, and any transition or wind-down fees.

Step-by-step: completing the addendum

Follow these steps to ensure the addendum is accurate, enforceable, and integrated with invoicing workflows.

01

Gather documents: Collect master agreement, pricing schedules, and tax IDs before editing fields.
02

Fill pricing table: Enter unit prices, discounts, effective dates, and currency for each line item.
03

Review adjustments: Confirm escalation formulas, caps, and notice requirements with legal and finance.
04

Execute and distribute: Obtain required signatures, store with the master contract, and notify billing teams.

Recommended online workflow settings

Configure eSignature and routing options to preserve audit trails and reduce signer friction.

Field	Configuration
Signer Order	Set sequential routing to ensure approvals occur in the correct sequence.
Authentication	Use email link plus optional SMS code for higher assurance where required.
Expiration	Set a signing window (30–90 days) to avoid stale pricing acceptance.
Notifications	Enable reminders and completion copies to billing contacts automatically.

Digital signing and platform considerations

Choose a platform that supports secure audit trails, compliant storage, and integration with finance systems.

Integrations: Salesforce, NetSuite, and Google Workspace are commonly required integrations.
File formats: PDF, DOCX, and searchable exports enable automated invoice generation.
Authentication: Email, SMS, or advanced signer verification as needed.

Where to send, store, and register the addendum

Specify primary recipients and storage repositories so the document is actionable once signed.

Send to Legal: Legal retains final executed copy and any amendment history for compliance.
Send to Finance: Finance receives pricing tables and billing contact details to configure AR systems.
Store in CLM: Upload executed PDF to the contract lifecycle management repository with metadata.
Distribute to Ops: Operations teams receive the schedule needed to fulfill services at the agreed rates.

eSignature vendor comparison for executing the addendum

Comparison of common eSignature vendors on pricing and core features relevant to signing and managing pricing addenda.

	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	Yes, 7-day free trial	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
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Essential data and security annotations to include

Confidential Pricing: Identify confidentiality level and access limits

Price Matrix: Include SKU, unit, and currency

Effective Date: MM/DD/YYYY format

Billing Cycle: Monthly, quarterly, or annual

Tax Allocation: Specify party responsible for taxes

Audit Rights: Define scope and retention requirements

Common penalty exposures and contractual risks

Late Payment: Late fees or interest charges

Incorrect Tax: Withholding or tax liabilities

Unauthorized Discounts: Revenue leakage and reconciliation issues

Missed Notice: Lost right to escalate or adjust pricing

Audit Findings: Potential repayment or penalty obligations

Contract Conflict: Inconsistency with master agreement terms

Preparation pitfalls to avoid

Leaving escalation formulas vague or unsigned can permit differing interpretations and costly disputes between billing cycles.
Failing to specify currency and tax responsibility often causes cross-border invoice disputes and delayed payments.
Not aligning the addendum effective date with the master agreement leads to gaps in revenue recognition and enforcement.
Omitting audit scope or data access details may prevent efficient validation of usage or discount eligibility during financial reviews.

Practical tips for accurate, efficient completion

Adopt standard templates, require legal review, and keep a single source of truth to reduce friction across teams.

Use a consistent template

Standardize layout and field names across agreements so billing systems and reviewers can map data automatically and reduce human error.

Lock core clauses

Treat escalation formulas and tax allocation as fixed unless a formal amendment process is followed to prevent unilateral changes.

Preserve audit evidence

Retain invoices, usage reports, and signed addenda in searchable format to support audits and statutory record requests.

Coordinate cross-functional review

Have legal, finance, procurement, and sales approve final pricing language to align commercial intent with accounting and compliance.

Key timing items to specify in the addendum

Define precise deadlines for notice, invoice issuance, dispute windows, and renewal triggers to avoid ambiguity and missed obligations.

Effective Date:

When pricing begins and invoicing should start

Invoice Due Date:

Net terms such as Net 30 or Net 45

Dispute Window:

Days allowed to raise invoice disputes

Renewal Notice:

Advance notice required for rate changes

Audit Notice:

Lead time required for pricing audits

Key milestones and processing stages

Sequence the primary stages from negotiation to audit so stakeholders understand the lifecycle and timing responsibilities.

01

Negotiation Complete

Finalize pricing tables and adjustment mechanics before routing for signatures.

02

Execution Date

Signers complete execution and the effective date is recorded.

03

First Invoice

Billing system issues the initial invoice under new terms.

04

Audit Window

Defined period when either party may request invoice and usage verification.

Real-world examples

Practical examples show how organizations handle pricing schedules and execution in different contexts.

Optica Ventures

The team standardized unit pricing across portfolios to reduce billing exceptions.

This reduced inquiry volume by consolidating price lists.
As a result, finance reconciliations became faster and vendor disputes dropped, enabling predictable cash flow while preserving negotiated discount structures.

Martin Properties

Company moved to a digital addendum for leasing services and indexed adjustments.

Electronic execution synchronized renewal dates.
They reported faster collection on first invoices and clearer handoffs between leasing and accounting teams, without additional in-person signing.

Frequently asked questions and practical answers

Answers to common legal, procedural, and technical questions about drafting, signing, and managing a Business Pricing Addendum.

Need help? Contact support

Is an electronic signature legally binding?
Yes. In the United States, eSignatures are enforceable under the ESIGN Act (15 U.S.C. ch. 96, 2000) and UETA in most states, provided intent, consent, attribution, and record retention requirements are met.
Do I need a notary for a pricing addendum?
Generally no for commercial pricing addenda, unless state law, the master agreement, or a specific party requires notarization. For certain property or real-estate-adjacent filings, a notary or witnesses may be required.
Can I change pricing unilaterally?
Only if the addendum includes a unilateral escalation clause with clear notice, cap, and calculation method. Otherwise, changes typically require mutual amendment and execution by authorized signatories.
What if a signer uses a different legal name?
Mismatched signer names can delay acceptance or invoice processing. Use the legal entity name and include a corporate authorization reference when an agent signs on behalf of a company.
How should I respond to invoice disputes tied to the addendum?
Follow the dispute resolution steps in the addendum: preserve documents, notify the other party within the dispute window, and follow any agreed escalation procedure before withholding payment.
Are remote online notarizations acceptable?
Many states permit RON with identity proofing and audio-video recording; requirements vary. Confirm state notary rules and retain required recordings and logs when RON is used.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now