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Business Services SC-3

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Business Services SC-3

Parties

WHEREAS

1. Service Provider represents that it has the experience, personnel, and capability to perform the business services described in this Agreement and is duly authorized to enter into this Agreement and perform the services hereunder.

2. Client desires to retain Service Provider to provide certain business services, and Service Provider agrees to provide such services subject to the terms and conditions set forth in this Agreement.

3. The parties wish to set forth the terms that will govern the provision of services, payment, confidentiality, and other obligations between them.

Scope of Work

Service Provider shall perform the services and deliver the deliverables described below in accordance with the standards of care and professional skill customarily exercised by qualified providers performing similar services.

Payment Terms

Client shall pay Service Provider for services rendered as follows. Amounts due are exclusive of any taxes unless otherwise stated.

Invoices shall be issued by Service Provider and are payable within days of receipt, unless otherwise agreed in writing.

Late payments shall accrue interest at (or the maximum rate permitted by law), calculated monthly on any unpaid balance.

Client is responsible for all applicable sales, use, and similar taxes attributable to payments under this Agreement.

Term and Termination

This Agreement commences on and, unless earlier terminated in accordance with this Agreement, continues until .

Either party may terminate this Agreement for convenience upon days' prior written notice to the other party.

Either party may terminate immediately for material breach by the other party that is not cured within 15 days after receipt of written notice specifying the breach. Termination shall not affect accrued rights or obligations of either party.

Confidentiality

"Confidential Information" means non-public information disclosed by one party to the other, whether disclosed orally, in writing or electronically, that is designated as confidential or that reasonably should be understood to be confidential given the nature of the information.

Each party shall (a) hold Confidential Information in strict confidence, (b) use Confidential Information only for the purposes of performing obligations under this Agreement, and (c) not disclose Confidential Information to any third party except to those employees, agents, or contractors with a need to know who are bound by confidentiality obligations no less protective than those herein. The foregoing obligations do not apply to information that: (i) is or becomes publicly available through no fault of the recipient; (ii) is rightfully received from a third party without restriction; or (iii) is independently developed without use of the discloser's Confidential Information.

Confidentiality obligations shall continue for years following termination or expiration of this Agreement, except with respect to trade secrets, for which obligations shall remain in effect as long as the information qualifies as a trade secret under applicable law.

Intellectual Property

Unless otherwise agreed in writing, Service Provider retains ownership of its pre-existing intellectual property and methodologies. Subject to Client's payment of all fees due, Service Provider grants Client a non-exclusive, non-transferable license to use deliverables provided under this Agreement for Client's internal business purposes. Any third-party materials incorporated into deliverables remain subject to the third party's license terms.

Independent Contractor; Indemnity; Limitation of Liability

Service Provider is an independent contractor. Nothing in this Agreement creates a partnership, joint venture, or employment relationship. Each party shall be responsible for its own taxes and benefits.

Each party shall indemnify and hold harmless the other party from claims arising out of its gross negligence, willful misconduct, or breach of this Agreement. Except for liability arising from willful misconduct or indemnity obligations, neither party's aggregate liability for any claim arising under this Agreement shall exceed the total amounts paid by Client to Service Provider under this Agreement in the twelve (12) months preceding the claim.

Notices

All notices required or permitted under this Agreement shall be in writing and delivered to the contact addresses set forth above or to such other address as a party may designate by written notice to the other. Notices delivered by email must be followed by a hard copy if requested by the recipient.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of without regard to its choice of law rules. The parties agree that any dispute arising out of or relating to this Agreement shall be resolved in the state or federal courts located in the governing jurisdiction unless otherwise agreed in writing.

Entire Agreement; Amendments

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

Severability

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 negotiate in good faith to replace the invalid provision with a valid provision reflecting the parties' original intent.

Execution

The parties have executed this Agreement by their duly authorized representatives as of the dates set forth below.

Service Provider:

Printed Name:

By:

Date:

Client:

Printed Name:

By:

Date:

Enter text✕

What the Business Services SC-3 Is and Where It Fits

The Business Services SC-3 is a standard business services agreement template used to document terms, responsibilities, pricing, and delivery for professional services. It typically defines parties, scope of work, deliverables, payment terms, confidentiality, liability limits, and termination provisions. Organizations use the SC-3 to create consistent contracts for vendor engagements, consulting arrangements, and project-based services. When executed correctly the form becomes an enforceable commercial contract under U.S. law and can be completed and archived electronically in compliance with ESIGN and applicable state e-signature statutes.

Why Use a Formal Business Services SC-3

A clear SC-3 reduces misunderstandings by documenting scope, pricing, schedules, and acceptance criteria. It establishes contractual protections such as limitation of liability, IP assignment, and termination rights, and supports consistent processing across teams and systems.

Why Use a Formal Business Services SC-3

Common users and signer roles for the SC-3

The SC-3 is used across procurement, operations, legal, and finance functions that manage supplier relationships and project work.

  • Procurement teams managing vendor selection and contract terms for services.
  • Finance teams reviewing payment schedules, invoicing procedures, and tax reporting.
  • Project managers enforcing deliverables, milestones, and acceptance criteria.

Different departments use specific sections: procurement for terms, finance for payment, legal for risk provisions, and project managers for scope and acceptance.

Step-by-step: Completing the Business Services SC-3

Follow a consistent sequence to reduce rework: identify parties, confirm scope, set pricing and milestones, complete signature blocks, then route for approvals and retention.

  • 01
    Prepare: Gather corporate names, tax IDs, and service details before drafting.
  • 02
    Define Scope: Describe deliverables, acceptance criteria, timelines, and milestones.
  • 03
    Set Terms: Specify payment schedule, invoicing rules, and remedies for breach.
  • 04
    Execute: Obtain signatures, date the document, and capture the audit trail.

Configuring Online Workflow for the SC-3

Map the lifecycle: drafting, internal approval, e-sign, and archival. Configure conditional routing for countersignatures or approvals.

Field Configuration
Signature Order Sequential or parallel routing based on role
Authentication Email, SMS code, or stronger verification
Conditional Fields Show payment details only for fixed-price engagements
Retention Rule Auto-archive to secure storage after execution

Where to Send and How the SC-3 Flows After Signing

After execution route copies to central contract repository, finance for invoice processing, and project owners for delivery tracking.

  • Contract Repository: Store final PDF with metadata and audit trail
  • Finance: Send executed copy for invoicing and payment setup
  • Project Owner: Provide scope and milestone details for delivery
  • Legal: Retain for dispute resolution and compliance checks

Digital signing and distribution considerations

Choose signing and distribution channels that preserve audit trails and meet regulatory requirements before sending the SC-3.

  • Supported Formats: PDF, DOCX maintained with form fields
  • Integrations: Link to CRM, ERP, cloud storage systems
  • Authentication Options: Email link, SMS code, or stronger methods

Security, compliance, and proven controls

Encryption: TLS 1.2/1.3 in transit, AES-256 at rest
Certifications: SOC 2 Type II and ISO 27001 certified
HIPAA support: HIPAA-compliant with BAA available
21 CFR Part 11: Controls for FDA-regulated records supported
ESIGN / UETA: Compliant with U.S. e-signature law
Audit Trail: Tamper-evident logs and timestamps

Penalties and risks from incomplete or incorrect SC-3 data

Incorrect TIN: Triggers 24% backup withholding
Late tax forms: $60–$330 per information return
Missing signatory authority: Contract may be voidable
I-9 errors: $281–$2,789 per violation
HIPAA breaches: Civil penalties and corrective action
Lost records: Regulatory fines and evidentiary gaps

Common mistakes to avoid when preparing the SC-3

  • Using informal names or nicknames instead of the legal entity name leads to enforceability and payment issues.
  • Leaving scope vague or referring to verbal agreements creates disputes over deliverables and acceptance criteria.
  • Failing to confirm signer authority results in delayed acceptance and possible contract rescission.
  • Neglecting to attach exhibits or schedules that are referenced in the main agreement undermines contract clarity.

Timing and document-related deadlines to track

Track execution dates, invoice due dates, and any statutory reporting deadlines linked to the agreement.

Effective Date:

Controls when performance and notice periods begin

Invoice Due:

Follow payment terms in the contract to avoid late fees

W-9 Requests:

Collect taxpayer information before first payment

1099 Reporting:

Prepare for Jan 31 reporting deadlines where applicable

Document Retention:

Align retention with legal and regulatory requirements

Key milestones in the SC-3 lifecycle

A typical SC-3 passes through several milestone stages from drafting to closeout; document each milestone and owner.

01

Draft Completed

Document prepared and reviewed internally before routing

02

Internal Approval

Legal and finance approve terms and payment language

03

Execution

All signatories sign and date the contract

04

Closeout

Deliverables accepted and final invoice processed

eSignature vendor comparison for executing the SC-3

Use the table to compare basic plan pricing and key features that matter for SC-3 execution and high-volume workflows. No datestamps are included in this summary.

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 Varies by plan Varies by plan Varies by plan Varies by plan
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

Real-world examples using the SC-3

These brief examples show how organizations adapted the SC-3 for common workflows in practice.

Optica Ventures

Optica standardized vendor contracts to speed onboarding

  • Used templates with defined milestones and invoice schedules
  • Standardization reduced back-and-forth and improved vendor compliance with delivery SLAs.

Martin Properties

Martin Properties digitized service agreements for field contractors

  • Adopted electronic signatures and mobile completion
  • The change enabled on-site execution and preserved audit logs for property management records.

Frequently asked questions about the Business Services SC-3

Answers to common questions about execution, electronic signing, notarization, authority, and retention for the SC-3.


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