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Business Solution Agreement

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BUSINESS SOLUTION AGREEMENT

Parties and Effective Date

This Business Solution Agreement (the "Agreement") is entered into as of (the "Effective Date") by and between:

Recitals

WHEREAS, Client Name: desires to obtain business solutions, consulting and implementation services in the areas set forth in this Agreement; and

WHEREAS, Service Provider Name: has the expertise, personnel and facilities to provide such services and agrees to perform the services under the terms and conditions set forth herein.

Scope of Work

Provider shall perform the services and deliverables described below. The parties acknowledge that the Scope of Work may be supplemented by written statements of work signed by both parties. Provider will perform such services in a professional and workmanlike manner, using appropriately qualified personnel, and in accordance with industry standards.

Payment Terms

In consideration for the services, Client will pay Provider the fees set forth below. Unless otherwise agreed in writing, all fees are payable in U.S. dollars and are exclusive of taxes for which Client is responsible.

Late payments shall accrue interest at the rate specified above, or if no rate is specified, at one and one-half percent (1.5%) per month on the outstanding balance, plus all costs of collection, including reasonable attorneys' fees.

Term and Termination

The term of this Agreement shall commence on the Effective Date and shall continue until , unless earlier terminated pursuant to this Section.

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 written notice. Either party may also terminate for convenience upon days' prior written notice.

Upon termination, Client shall pay Provider for all services performed and expenses incurred through the effective date of termination. Provisions that by their nature survive termination shall remain in effect.

Confidentiality

For the purposes of this Agreement, "Confidential Information" means all non-public information disclosed by a party (the "Disclosing Party") to the other party (the "Receiving Party") in any form that is designated as confidential or that reasonably should be understood to be confidential. Confidential Information includes, without limitation, business plans, technical data, know-how, software, financial information, pricing, customer lists, and proposals.

The Receiving Party shall: (a) hold Confidential Information in strict confidence and use at least the same degree of care to avoid disclosure as it uses with respect to its own confidential information but in no event less than reasonable care; (b) not disclose Confidential Information to any third party except to its employees, contractors and agents who have a need to know and who are bound by confidentiality obligations at least as protective as those herein; and (c) use Confidential Information solely to perform its obligations under this Agreement.

Confidential Information shall not include information that: (i) was known to the Receiving Party without restriction prior to disclosure by the Disclosing Party; (ii) is or becomes publicly known through no wrongful act of the Receiving Party; (iii) is lawfully received from a third party without restriction; or (iv) is independently developed by the Receiving Party without use of the Disclosing Party's Confidential Information. If the Receiving Party is compelled by law to disclose Confidential Information, it shall provide prior notice to the Disclosing Party and use reasonable efforts to obtain confidential treatment.

Representations and Warranties

Each party represents and warrants that it has the full corporate or other power and authority to enter into and perform its obligations under this Agreement and that the person signing on its behalf is authorized to bind that party.

Governing Law and Dispute Resolution

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. The parties agree that any dispute arising out of or relating to this Agreement shall be resolved by binding arbitration unless the parties mutually agree otherwise, and judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction.

Indemnification and Limitation of Liability

Each party shall indemnify, defend and hold harmless the other party from and against any and all third-party claims, liabilities, losses, damages and expenses (including reasonable attorneys' fees) arising from the indemnifying party's breach of this Agreement, willful misconduct or gross negligence. EXCEPT FOR A PARTY'S INDEMNITY OBLIGATIONS OR WILLFUL MISCONDUCT, NEITHER PARTY SHALL BE LIABLE FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES, AND EACH PARTY'S AGGREGATE LIABILITY FOR ANY CLAIM ARISING UNDER THIS AGREEMENT SHALL NOT EXCEED THE AMOUNTS PAID OR PAYABLE TO PROVIDER UNDER THIS AGREEMENT DURING THE TWELVE (12) MONTHS PRECEDING THE CLAIM.

Notices

All notices required or permitted under this Agreement shall be in writing and delivered to the addresses set forth above or to such other address as a party may designate in writing. Notices shall be deemed given upon delivery by hand, upon confirmed receipt by electronic mail, or three (3) days after deposit with a nationally recognized overnight courier.

Entire Agreement

This Agreement, including any statements of work and exhibits 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, negotiations and communications, whether oral or written. No amendment to this Agreement shall be effective unless in writing and signed by authorized representatives of both parties.

Miscellaneous

If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect. The parties are independent contractors and nothing in this Agreement creates an agency, partnership or joint venture. Neither party may assign this Agreement without the prior written consent of the other party, except to a successor in interest by merger or acquisition.

Client — Printed Name:

By:

Date:

Service Provider — Printed Name:

By:

Date:

Enter text✕

What a Business Solution Agreement Is and When It Applies

A Business Solution Agreement is a bilateral contract that defines the commercial relationship between parties providing and receiving a business solution, including scope, deliverables, fees, timelines, service levels, intellectual property allocation, and termination rights. It frames expectations for performance, assigns responsibilities, and establishes remedies and remedies timing for breach. These agreements are commonly used for software-as-a-service, consulting engagements, managed services, and integrated solution deliveries where clear operational and legal terms reduce dispute risk and support governance across teams, vendors, and procurement functions.

Why a Clear Agreement Protects Both Parties

A well-drafted Business Solution Agreement assigns responsibilities, limits liability, and clarifies payment and deliverable schedules to reduce disputes. It provides a contractually enforceable framework for change orders, data handling, termination, and IP ownership, helping organizations manage project risk and compliance under applicable law.

Why a Clear Agreement Protects Both Parties

Who Typically Prepares and Signs This Agreement

Key stakeholders who create, review, or sign Business Solution Agreements include procurement, legal, IT, finance, and the vendor delivery lead.

  • Procurement and Sourcing teams that negotiate commercial terms, pricing, and service levels for enterprise purchases.
  • Legal counsel who review liability, IP, data protection, and governing-law clauses prior to execution.
  • Finance and Accounts Payable that validate payment terms, invoicing procedures, and tax implications.

Final signatures typically come from authorized signatories such as officers, directors, or delegated managers with written signing authority recorded in corporate resolutions or power-of-attorney documents.

Who Has Authority to Sign

Corporate Officer

An executive (CEO/CFO/COO) with signing authority under corporate bylaws or board resolution is generally sufficient for material agreements and often required for commitments exceeding delegated approval limits.

Delegated Signer

Managers or directors may sign under a written delegation (procurement policy or POA); ensure delegation is current and scope-limited to avoid later enforceability disputes.

Core Clauses to Include in a Business Solution Agreement

Include clear sections that define parties, services, financial terms, performance obligations, legal protections, and the process for changes so the agreement functions as an operational playbook.

Parties & Recitals

Identify legal entity names, addresses, and representative contacts, plus a brief recital establishing the commercial purpose and background context for the engagement.

Scope of Services

Describe deliverables, milestones, acceptance criteria, service levels, and any excluded services to avoid scope creep and billing disputes during execution.

Fees & Payment

Detail pricing, invoicing schedule, payment terms, late-payment interest, expense reimbursement, and any milestone or subscription billing mechanics.

Intellectual Property

Allocate ownership for preexisting IP, work product, licenses, and include assignment or license-back terms relevant to software, custom code, or content.

Confidentiality & Data

Specify confidential information definitions, permitted uses, data protection measures, and any required addenda for HIPAA or other privacy regimes.

Termination & Remedies

Set termination rights for convenience and cause, notice periods, transition obligations, and limits on liability and indemnification caps.

Step-by-Step: Completing a Business Solution Agreement

Follow these sequential steps to prepare, review, and finalize the agreement with minimal rework and clear auditability.

  • 01
    Draft: Populate scope, fees, and timelines using the template and attached exhibits.
  • 02
    Internal Review: Route to legal, procurement, and finance for redlines and risk assessment.
  • 03
    Counterparty Review: Share redlined version and negotiate unresolved terms with documented change history.
  • 04
    Execute: Obtain authorized signatures and distribute fully executed copies to stakeholders.

How to Configure the Online Signing Workflow

Set up an online workflow that enforces signing order, authentication, and audit capture for compliance and traceability.

Field Configuration
Signature Authentication Email link, SMS code, or KBA as required
Conditional Fields Show/hide fields based on role or checkbox state
Template Management Create reusable template with locked clauses
Audit Trail Capture timestamps, IPs, and action logs

Digital Signing and Delivery Requirements

Ensure the chosen platform supports required authentication, format compatibility, and integrations before e-execution.

  • File Formats: PDF and DOCX supported
  • Integrations: Salesforce, NetSuite, Google Workspace
  • Security: AES-256 encryption at rest

Confirm platform compliance for regulated data (HIPAA, 21 CFR Part 11) and ensure audit records are retained per retention policy.

Where to Send, File, and Store the Agreement

After execution, deliver signed copies to internal and external stakeholders and store the master copy in a secure contract repository for retrieval.

  • Counterparty: Send fully executed PDF to all signers
  • Legal Repository: Upload master copy to contract management system
  • Financial Records: Forward invoice schedule to accounts payable
  • Project Team: Share relevant deliverable and acceptance terms

Security and Compliance Essentials to Note

Encryption: AES-256 at rest
Transport: TLS 1.2/1.3 in transit
Audit Trail: Timestamps and IP logs
HIPAA: BAA required for PHI
SOC 2: Report available on request
21 CFR Part 11: Supports FDA record requirements

Common Legal and Financial Risks

Unenforceable Terms: Missing intent or consent can invalidate signature (15 U.S.C. §7001).
Data Breach Liability: Improper PHI handling can trigger HIPAA penalties (45 CFR §164.530(j)).
Tax Exposure: Incorrect payment treatment could affect IRS reporting obligations (IRC §6501(a)).
Delay Costs: Late acceptance may delay milestones and revenue recognition.
Noncompliance Fines: Regulatory breaches may result in statutory penalties.
Dispute Expenses: Litigation or arbitration increases transactional costs.

Frequent Preparation Mistakes to Avoid

  • Using ambiguous scope language that creates differing expectations and later disputes between delivery and billing teams.
  • Omitting authority verification for signers, which can produce disputed signatures and require re-execution under corporate resolution.
  • Failing to attach critical exhibits (SOW, pricing schedule, SLA) that define deliverables and acceptance criteria.
  • Relying on oral side agreements that contradict written terms and complicate enforcement in dispute resolution.

Typical Deadlines and Timing Considerations

Track these common timeline items to ensure timely performance, renewals, and required notices under the agreement.

Effective Date:

Agreement start date controls obligations and calculation of deliverable due dates.

Signature Deadline:

Set a target date for execution to lock in pricing and schedules.

Renewal Notice:

Specify advance notice period (e.g., 30–90 days) for automatic renewals.

Payment Due Dates:

Define invoice cycle and any milestone-triggered payments.

Acceptance Period:

State the timeframe for customer testing and formal acceptance.

Key Milestones and Processing Stages

Use a milestone checklist to coordinate drafting, approvals, execution, and post-signature onboarding across teams.

01

Draft Circulation

Internal drafting and initial stakeholder review complete before external negotiation.

02

Negotiation Window

Counterparty redlines and comment resolution phase prior to final sign-off.

03

Execution Window

Signatures obtained and confirmation of authorized signers recorded.

04

Onboarding Start

Project kickoff and delivery timeline begin once agreement is fully executed.

Representative eSignature Pricing and Feature Comparison

Compare typical starting prices and common capabilities across vendors to align platform selection with compliance and volume needs.

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 Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Real-World Examples of Business Solution Agreements in Use

Examples show how different organizations used standard agreements to speed execution, preserve compliance, and reduce administrative overhead.

Optica Ventures LLC

Their team standardized vendor agreements to reduce negotiation cycles and improve clarity for clients

  • Saving multi-day review time per contract
  • The interface simplicity helped internal teams and customers complete and return agreements more quickly, improving operational throughput.

Martin Properties

Used a digital agreement template to automate lease services and vendor onboarding

  • Reduced in-person signing needs
  • Processing and executing documents online produced consistent compliance controls and faster turnaround for clients and contractors.

Frequently Asked Questions About Business Solution Agreements

Answers to common execution, enforceability, and post-signature questions to help avoid delays and legal uncertainty.


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