Is an electronic signature legally valid?

Yes. Under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, electronic signatures are legally binding if intent, consent, attribution, and record retention requirements are satisfied.

Do I need a notary or witness for validity?

Most commercial agreements do not require notarization. Specific instruments (certain real estate conveyances, wills, or powers of attorney) may require a notary or witnesses depending on state law.

What if a signer’s name doesn’t match official records?

A name mismatch can raise enforceability and tax reporting issues; correct legal names and, if needed, attach a signer’s ID or corporate resolution to establish authority.

How should I attach exhibits and schedules?

Attach exhibits as appendices, reference them in the agreement text, and ensure each party initials or acknowledges attachments to prevent later claims of omission.

Can I revoke or amend after signing?

Revocation or amendment requires agreement by all parties per the contract’s modification clause; unilateral revocation is generally ineffective absent a contractual right or rescission agreement.

How long should I retain executed copies?

Retain executed agreements for the full contract term plus relevant statutory periods (IRS 3 years IRC §6501(a); HIPAA 6 years 45 CFR §164.530(j)), and follow longer state or industry requirements.

Electronic Signature
Templates
Miscellaneous
Business Statement and Agreement

Business Statement and Agreement

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

BUSINESS STATEMENT AND AGREEMENT

This Business Statement and Agreement ("Agreement") is made effective as of by and between Business Name: , a business organized and existing under applicable law, with principal place of business at , and Counterparty Name: , with principal place of business at .

RECITALS

WHEREAS, Business Name represents that it is engaged in the business of providing the services and deliverables described in this Agreement and possesses the skill and experience to perform such services; and

WHEREAS, Counterparty Name desires to retain Business Name to perform the services set forth in this Agreement under the terms and conditions hereinafter provided; and

WHEREAS, the parties intend by this Agreement to establish their respective rights and obligations with respect to the services, compensation, confidentiality, and other matters described below.

SCOPE OF WORK

Description of Services and Deliverables

The scope described above shall include all tasks, duties, milestones, and deliverables reasonably necessary to accomplish the described objectives. Any material changes to scope shall be documented in writing and signed by authorized representatives of both parties prior to implementation.

PAYMENT TERMS

Total Contract Amount: $

Payment Schedule and Milestones

Invoices shall be submitted in accordance with the payment schedule above and are due within days of receipt unless otherwise agreed in writing. Payment shall be made by: .

Late Payment: Unpaid amounts shall accrue interest at the rate of (or the maximum lawful rate, if less), calculated monthly from the date due until paid in full. The prevailing party shall be entitled to recover collection costs, including reasonable attorneys' fees.

TERM AND TERMINATION

Term: This Agreement commences on and continues until , unless earlier terminated as provided herein.

Termination for Convenience: Either party may terminate this Agreement without cause upon giving days' prior written notice to the other party.

Termination for Cause: Either party may terminate immediately upon written notice if the other party materially breaches this Agreement and fails to cure such breach within 15 days after receipt of written notice specifying the breach. Termination shall not relieve either party of obligations accrued prior to termination.

CONFIDENTIALITY

Definition: "Confidential Information" means non-public information disclosed by a party in connection with this Agreement, whether oral, written, or electronic, that is marked confidential or that reasonably should be understood to be confidential given its nature and the circumstances of disclosure.

Obligation: The receiving party shall (a) use Confidential Information solely for performance under this Agreement; (b) restrict disclosure to those employees, contractors, or advisors who have a need to know and who are bound by confidentiality obligations no less protective than those herein; and (c) protect Confidential Information with at least the same degree of care it uses to protect its own confidential material, but in no event less than reasonable care.

Exclusions: Confidential Information does not include information that is (i) publicly known through no fault of the receiving party; (ii) rightfully received from a third party without restriction; (iii) independently developed by the receiving party without use of Confidential Information; or (iv) required to be disclosed by law, provided the disclosing party is given prompt written notice to seek protective relief.

Duration: The confidentiality obligations set forth herein shall survive termination of this Agreement for a period of three (3) years, except that trade secrets and information qualifying for longer protection shall be protected for so long as such status remains.

NOTICES

Business Notice Address Counterparty Notice Address

Notices under this Agreement shall be in writing and delivered by hand, certified mail (return receipt requested), or nationally recognized courier to the addresses set forth above (or to such other address as either party designates by notice). Notices sent by email shall be effective upon confirmation of receipt only if accompanied by one of the foregoing delivery methods.

GOVERNING LAW; DISPUTE RESOLUTION

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to conflict of laws principles. The parties agree that any actions arising from or relating to this Agreement shall be brought exclusively in the state or federal courts located within that State, and each party submits to the personal jurisdiction of such courts.

REPRESENTATIONS; AUTHORITY

Each party represents and warrants that it has full power and authority to enter into this Agreement and to perform its obligations hereunder, and that the individual signing below is authorized to bind the respective party.

ENTIRE AGREEMENT

This Agreement, together with any exhibits or written amendments signed by both parties, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous negotiations, representations, and agreements, whether written or oral. No modification of this Agreement shall be effective unless in writing and signed by both parties.

MISCELLANEOUS

Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain effective and binding. Waiver of any breach shall not constitute waiver of subsequent breaches. Headings are for convenience only and shall not affect interpretation.

Business (Party A):

Printed Name:

By:

Date:

Counterparty (Party B):

Printed Name:

By:

Date:

What a Business Statement and Agreement Is

A Business Statement and Agreement is a written record that sets out the factual background, mutual commitments, and enforceable obligations between commercial parties. It typically summarizes the business purpose, identifies the parties and their roles, describes consideration and key terms, and documents signatures and execution details. When executed correctly it functions as a binding contract under U.S. law and may be completed and stored electronically consistent with the ESIGN Act (15 U.S.C. §7001) and state UETA statutes.

Why this document matters for clarity and enforceability

A clear Business Statement and Agreement reduces ambiguity, establishes rights and duties, and creates a defensible record for performance or dispute resolution. Properly prepared, it supports enforcement in courts and arbitrations and can be executed electronically under ESIGN (15 U.S.C. §7001) and UETA where adopted.

Who commonly completes a Business Statement and Agreement

Organizations and professionals use this document when formalizing deals, documenting facts, or creating a signed contract record.

Real Estate professionals and brokerages using clear deal terms and disclosures when exchanging offers and counteroffers.
Legal and compliance teams drafting formal statements, warranties, and representations for transactions and regulatory submissions.
Small and mid-size businesses documenting vendor relationships, service commitments, or one-off commercial agreements.

Signers typically represent the signing authority for each party and should confirm identity and capacity before execution.

Core components to include in a professional Business Statement and Agreement

Organize the document into standard contract elements so obligations, timelines, and remedies are clear and auditable.

Business Statement

Concise factual background describing the transaction, purpose, and relevant prior events so context for obligations is clear.

Parties

Full legal names, entity types, and contact details for each party; identify authorized signatories and their roles for attribution.

Term

Exact effective date and duration including renewal, milestone dates, and termination triggers to avoid timing disputes.

Consideration

Precise description of payments, deliverables, services, or mutual promises; avoid vague language like 'reasonable efforts'.

Representations

Key warranties, covenants, and any limiting disclaimers that allocate risk between the parties and support remedies.

Execution

Signature blocks, dates, witness or notary lines if required, and clause confirming electronic signatures where used.

Security, authentication, and compliance essentials

Encryption: TLS 1.2/1.3 in transit

Data at rest: AES-256 encrypted

Audit trail: Immutable timestamped log

Certifications: SOC 2 Type II; ISO 27001

Privacy / HIPAA: HIPAA (BAA required)

E-signature law: ESIGN and UETA compliant

Simple step-by-step: complete and execute the agreement

Follow a consistent process to reduce errors and create a legally defensible record whether signing on paper or electronically.

01

Prepare document: Draft clear facts, terms, and signature blocks.
02

Identify parties: Use full legal names and corporate capacities.
03

Add fields: Place signature, date, and initial fields where required.
04

Execute: Obtain signatures, confirm identity, and retain the audit trail.

Typical online workflow settings for e-execution

Configure your digital workflow to balance signer convenience with required authentication and recordkeeping.

Field	Configuration
Signer authentication	Email link plus optional SMS code
Field validation	Required fields and format checks (dates, amounts)
Conditional logic	Show fields only when applicable
Audit & webhooks	Enable audit trail and integration webhooks

How electronic execution typically flows

Electronic signing follows a predictable sequence; confirm each step is recorded for evidence and retention.

Upload: Add the finalized agreement to the signing platform.
Prepare fields: Place signature, date, and optional data fields.
Notify signer: Send secure invite or public signing link.
Complete record: Signed PDF plus audit trail stored securely.

Penalties and common legal risks to watch for

1099 Late Penalties: $60–$330 per form

Intentional Disregard: $660+ per form, no cap

Backup Withholding: 24% withholding

I-9 Violations: $281–$2,789 per violation

Missing Notary: May affect enforceability

Incorrect Parties: Could void the agreement

Frequent mistakes that lead to delays or disputes

Using informal or abbreviated legal names that differ from formation documents, which can create ambiguity about who is bound.
Failing to date signatures or using inconsistent effective dates, leaving performance timelines and statute of limitations unclear.
Omitting consideration or describing it vaguely, which can make the contract unenforceable for lack of mutual obligation.
Not attaching referenced exhibits or schedules, or failing to initial each page, prompting demands for corrected re-execution.

Practical tips for accurate and efficient completion

Adopt a checklist approach, confirm signer authority, and preserve an unalterable record of the executed agreement.

Confirm legal names and capacity

Verify entity names against formation documents or government records and confirm the signer’s corporate title or authority to bind the organization before execution.

Use clear effective dates

Specify the effective date in MM/DD/YYYY format and ensure all parties sign and date the signature blocks to avoid competing interpretations.

Preserve the audit trail

When using electronic execution, retain the audit record showing timestamps, IP addresses, and authentication events to support attribution and admissibility.

Keep supporting exhibits

Attach referenced exhibits, schedules, and proofs of authority (e.g., board minutes, power of attorney) and initial or index them to prevent omission disputes.

Common eSignature vendor comparison for signing this agreement

Compare core pricing and capabilities across common eSignature vendors; signNow is listed first per page convention.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo; no envelope cap	$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

Frequently asked questions and troubleshooting

Answers to common legal and technical questions about executing, validating, and storing a Business Statement and Agreement.

Need help? Contact support

Is an electronic signature legally valid?
Yes. Under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, electronic signatures are legally binding if intent, consent, attribution, and record retention requirements are satisfied.
Do I need a notary or witness for validity?
Most commercial agreements do not require notarization. Specific instruments (certain real estate conveyances, wills, or powers of attorney) may require a notary or witnesses depending on state law.
What if a signer’s name doesn’t match official records?
A name mismatch can raise enforceability and tax reporting issues; correct legal names and, if needed, attach a signer’s ID or corporate resolution to establish authority.
How should I attach exhibits and schedules?
Attach exhibits as appendices, reference them in the agreement text, and ensure each party initials or acknowledges attachments to prevent later claims of omission.
Can I revoke or amend after signing?
Revocation or amendment requires agreement by all parties per the contract’s modification clause; unilateral revocation is generally ineffective absent a contractual right or rescission agreement.
How long should I retain executed copies?
Retain executed agreements for the full contract term plus relevant statutory periods (IRS 3 years IRC §6501(a); HIPAA 6 years 45 CFR §164.530(j)), and follow longer state or industry requirements.

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