Are electronic signatures legally binding?

Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, provided the signature shows intent, consent, attribution, and retained reproducible records.

When is notarization required?

Most commercial promise agreements do not require notarization. Notarization or witnesses may be necessary for specific state forms or when an acknowledged instrument is preferred for recording.

How do I correct an error after signing?

Corrections typically require an amendment or mutual rescission and re-execution. Document the change with a signed addendum rather than editing the executed original.

Can a signer revoke an electronic signature?

A signer may withdraw consent to electronic records per ESIGN requirements, but withdrawal does not necessarily invalidate an already-executed agreement; consult counsel based on transactional facts.

What authentication level is sufficient?

Adequate authentication depends on risk: email verification is common for low risk; SMS or multi-factor and PKI are recommended for high-value commitments or regulated transactions.

How should I store the executed agreement?

Store a signed PDF/A copy plus the audit trail and any attachments. Maintain integrity using tamper-evident storage and retain per applicable federal and industry retention rules.

Electronic Signature
Templates
Miscellaneous
Business Promise Agreement

Business Promise Agreement

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

BUSINESS PROMISE AGREEMENT

This Business Promise Agreement ("Agreement") is made and entered into as of by and between the parties identified below.

Parties

Promisor (the party making the promise) Promisor Entity Type

Individual Corporation LLC Partnership

Promisor Address Promisee (the party to whom the promise is made) Promisee Entity Type

Individual Corporation LLC Partnership

Promisee Address

Recitals

WHEREAS, Promisor conducts business in the ordinary course and possesses certain capacity, expertise, resources and obligations relevant to the matters described herein; and

WHEREAS, Promisee desires to rely upon Promisor's express undertakings set forth in this Agreement, and Promisor is willing to bind itself to such undertakings in consideration of the promises and consideration set forth below.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

Scope of Work

Promisor shall perform or cause to be performed the obligations described below. The description identifies the parties' expectations, deliverables and measurable standards of performance:

Payment Terms

In consideration for Promisor's performance, Promisee shall pay to Promisor the amounts and according to the schedule specified below. All amounts are in United States dollars unless otherwise indicated.

Total Consideration Payment Schedule and Method Net Payment Terms (days) Late Fee / Interest

All late payments shall accrue interest at the rate set forth above from the due date until paid. The prevailing party shall be entitled to recover reasonable costs of collection, including attorneys' fees and court costs, in addition to any amounts owed.

Term and Termination

This Agreement shall commence on and shall continue until unless earlier terminated as provided herein.

Either party may terminate this Agreement for material breach by the other party if the breaching party fails to cure such breach within days after receipt of written notice specifying the breach. In addition, either party may terminate this Agreement without cause upon days' prior written notice to the other party.

Termination shall not relieve either party of obligations accrued prior to the effective date of termination, including payment for services performed or costs incurred.

Confidentiality

Each party acknowledges that, in the course of performance under this Agreement, it may receive or have access to confidential or proprietary information of the other party ("Confidential Information"). Each party shall: (a) hold the other party's Confidential Information in strict confidence; (b) use Confidential Information solely to perform its obligations under this Agreement; and (c) not disclose Confidential Information to any third party except as required by law or with the other party's prior written consent.

Confidentiality obligations shall continue for a period of years after termination or expiration of this Agreement, except that trade secrets shall remain protected for so long as they qualify as trade secrets under applicable law.

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. Exclusive venue for any dispute arising out of this Agreement shall be the state or federal courts located in that state, and the parties consent to personal jurisdiction therein.

Entire Agreement; Amendment

This Agreement, including all exhibits and schedules expressly incorporated herein, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, proposals and communications, whether written or oral. No amendment, modification or waiver shall be effective unless in writing and signed by authorized representatives of both parties.

Miscellaneous Provisions

Assignment: Neither party may assign this Agreement or any of its rights or obligations hereunder without the prior written consent of the other party, except that either party may assign to an affiliate or in connection with a merger or sale of substantially all assets.

Severability: If any provision of this Agreement is held unenforceable, the remaining provisions shall remain in full force and effect and the parties shall endeavor to replace the unenforceable provision with a valid provision that most closely approximates the parties' original intent.

Notices: All notices required or permitted under this Agreement shall be delivered in writing to the addresses set forth above or to such other address as a party may designate by written notice in accordance with this paragraph.

Promisor:

By:

Date:

Promisee:

By:

Date:

What a Business Promise Agreement Is and when it’s used

A Business Promise Agreement is a written contract in which one party makes specific promises to another—examples include payment commitments, delivery obligations, or performance milestones. It sets the scope of duties, consideration, timelines, and remedies for breach. When executed properly, the agreement creates binding obligations enforceable in court; electronic execution is generally valid under the ESIGN Act (15 U.S.C. ch. 96) and UETA (where adopted). The document can be adapted for short-term commercial commitments or longer contractual relationships and often includes signature blocks, notices, and governing law clauses.

Why a clear Business Promise Agreement matters

A well-drafted Business Promise Agreement reduces ambiguity, documents agreed consideration, sets performance deadlines, and preserves remedies if the other party fails to perform. Clear terms aid enforcement and dispute resolution and support admissible electronic records when ESIGN (15 U.S.C. ch. 96) and UETA apply.

Core elements to include in a Business Promise Agreement

These six components form the contract backbone. Include them to define obligations, limits, dispute processes, and who may lawfully sign.

Parties

Identify each contracting entity by full legal name, entity type, and state of formation; include a primary contact and business address for notices and service.

Promise

Describe the specific obligation(s) in measurable terms—quantities, deadlines, performance standards, acceptance criteria, and deliverables to avoid ambiguity.

Consideration

State the payment amount, schedule, or reciprocal obligation that constitutes consideration; include invoicing and payment terms to limit disputes.

Term & Termination

Specify start and end dates, renewal rules, and termination rights including cure periods and consequences for early termination or default.

Representations & Warranties

List each party’s material assurances (authority, compliance with law, no conflicting obligations) and procedures for notifying breaches.

Remedies & Governing Law

Describe available remedies, limitation of liability, indemnities, and the governing state law and venue for disputes to clarify enforcement expectations.

Step-by-step: completing and executing a Business Promise Agreement

Follow these sequential steps to prepare, approve, and sign the agreement so it’s clear, executable, and admissible if disputes arise.

01

Prepare Draft: Assemble terms, dates, and parties for internal review.
02

Review & Approve: Obtain legal and finance approvals before finalization.
03

Set Signing Order: Determine who signs first and any witnesses required.
04

Execute and Archive: Sign electronically or in ink; save signed PDF and audit trail.

How to configure a digital signing workflow for this agreement

Use these settings when converting the agreement into an electronic workflow to ensure correct routing, authentication, and retention.

Field	Configuration
Signer Authentication	Email verification plus optional SMS code
Signature Type	Simple e-signature or PKI-backed digital signature
Routing Mode	Sequential or parallel signer order
Retention Format	PDF/A with audit trail metadata

Where to send or file the signed Business Promise Agreement

After signature, route copies to internal teams and external parties and file as appropriate for legal, tax, or operational needs.

Recipient Copy: Send executed PDF to all signers and listed contacts
Legal Folder: Store final signed copy in the legal contract repository
Accounting: Provide signed agreement to accounts payable/receivable
Regulatory Filing: File with regulatory body only if statute requires

Digital signing and technical considerations for e-submission

Confirm platform capabilities, authentication, and file formats before collecting electronic signatures.

File Formats: PDF, DOCX
Integrations: Salesforce, NetSuite, Google Workspace
Security: TLS in transit; AES-256 at rest

Downloading, exporting, and supporting documents to include

After execution, generate the canonical signed copy and collect supporting documents required to evidence the promises and parties’ authority.

Export Formats

Save the signed agreement as PDF/A for archival and as DOCX for editable records when permitted by policy.

Certificate of Completion

Retain the platform-generated audit trail that records signer identity, timestamps, IP, and actions for admissibility.

Supporting Docs

Attach formation documents, authorization resolutions, invoices, and proof of delivery that support the promise and consideration.

Version Control

Keep a single executed master and label amendments; preserve prior drafts for dispute context.

Common deadlines and timing provisions to include

Specify dates and timeframes clearly to avoid disputes. Use absolute dates where possible and define business days and notice methods.

Effective Date:

MM/DD/YYYY; obligations commence on this date

Payment Terms:

Net 30 days from invoice unless otherwise stated

Performance Milestones:

List milestone dates with acceptance criteria

Notice Period:

Specify days for cure or termination notices

Record Retention:

Retain executed document per company policy

Key milestones from drafting to closeout

Track major stages so the agreement moves from draft to enforceable obligation with clear ownership at each step.

01

Draft Approval

Legal and finance sign-off before external routing

02

Execution

All parties sign and date the final version

03

Performance Start

Obligations commence per the Effective Date

04

Closeout

Final deliverables accepted and obligations recorded

Penalties and legal risks of a deficient agreement

Breach Damages: Monetary liability or specific performance

Enforceability Risk: Invalid signature may void the contract under ESIGN

Withholding Risk: Incorrect payee info may trigger backup withholding

Tax Exposure: Misreporting consideration can lead to IRS penalties

Reputational Harm: Missed obligations may harm business relationships

Contract Gaps: Ambiguity can produce costly litigation

Common preparation mistakes to avoid

Using an informal or unclear description of the promise that creates differing expectations and dispute risk.
Failing to verify the signatory’s authority or corporate resolutions before execution, leading to enforceability challenges.
Omitting specific payment terms, milestone measures, or acceptance criteria that make performance disputes likely.
Relying on drafts or unsigned pages in operational records rather than the final executed master with audit trail.

Who typically signs a Business Promise Agreement

Chief Executive

The CEO or president signs when the obligation affects corporate strategy or high-value commitments; board approval or an authorization resolution is required for major transactions and should be attached.

Authorized Signatory

A designated officer or agent with written authority (officer title or corporate resolution) signs routine commercial agreements to bind the entity without full-board approval.

Practical examples of Business Promise Agreement use

These short examples show how organizations adapt the document for real workflows and electronic signing.

Optica Ventures (COO)

The team used a concise promise clause to clarify deliverables and payment timing.

The firm required audit trails for every signature.
They saved time by routing drafts through legal, then issuing a single executed PDF with a complete audit trail for finance and operations to reference.

Martin Properties (Founder)

A property manager defined rent and maintenance performance in a single promise agreement.

The document included exact milestone dates.
After electronic signatures were collected, the signed master and audit certificate were stored centrally and attached to tenant and accounting records for quick retrieval.

Comparing eSignature vendors for executing Business Promise Agreements

Vendor pricing and core features vary. signNow is listed first to compare starting price, trial availability, and compliance support across common providers.

	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 trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently asked questions about signing and enforcing Business Promise Agreements

Answers address enforceability, electronic signature legality, correcting executed documents, revocation, notarization, and storage best practices.

Need help? Contact support

Are electronic signatures legally binding?
Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, provided the signature shows intent, consent, attribution, and retained reproducible records.
When is notarization required?
Most commercial promise agreements do not require notarization. Notarization or witnesses may be necessary for specific state forms or when an acknowledged instrument is preferred for recording.
How do I correct an error after signing?
Corrections typically require an amendment or mutual rescission and re-execution. Document the change with a signed addendum rather than editing the executed original.
Can a signer revoke an electronic signature?
A signer may withdraw consent to electronic records per ESIGN requirements, but withdrawal does not necessarily invalidate an already-executed agreement; consult counsel based on transactional facts.
What authentication level is sufficient?
Adequate authentication depends on risk: email verification is common for low risk; SMS or multi-factor and PKI are recommended for high-value commitments or regulated transactions.
How should I store the executed agreement?
Store a signed PDF/A copy plus the audit trail and any attachments. Maintain integrity using tamper-evident storage and retain per applicable federal and industry retention rules.

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