Can a Business Tier Agreement be signed electronically?

Yes. Electronic signatures meet legal validity under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided intent, consent, attribution, and record retention are satisfied.

What if the signatory lacks authority?

If a signer lacks authority, the agreement may be voidable by the organization. Confirm delegated signing authority in corporate resolutions or a written delegation before execution.

Is notarization required for enforceability?

Not typically for commercial service agreements. Notarization and witnesses are instrument-specific; consult state law when a notarized record or RON is needed for evidentiary reasons.

How should I store signed Agreements?

Retain a tamper-evident PDF with the audit trail and store copies in a secure DMS with access controls and regular backups to meet retention and reproduceability requirements.

What authentication level is appropriate?

Match authentication to risk: email link for low risk, SMS or KBA for moderate risk, and multi-factor or advanced methods for high-risk or regulated transactions.

Can I amend the Agreement after signing?

Yes, through a written amendment signed by authorized parties. Document the effective date of the amendment and preserve prior versions with their signatures for audit history.

Electronic Signature
Templates
Miscellaneous
Business Tier Agreement

Business Tier Agreement

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

BUSINESS TIER AGREEMENT

This Business Tier Agreement ("Agreement") is entered into as of by and between , a business organized at ("Company"), and , with principal place of business at ("Client").

RECITALS

WHEREAS, Company provides tiered business services, solutions, and support designed to meet varying levels of service, performance, and deliverables; and

WHEREAS, Client desires to engage Company for services described in this Agreement under the selected tier and pay the fees and charges set forth herein; and

WHEREAS, the parties intend for this Agreement to set forth the full terms governing the services, compensation, confidentiality, and termination of their relationship.

SCOPE OF WORK

Company shall provide services to Client consistent with the selected Business Tier. The specific tasks, deliverables, performance standards, and milestones are described below. Company shall perform the services in a professional and workmanlike manner consistent with industry standards.

Detailed Scope (describe in detail)

PAYMENT TERMS

Client shall pay Company the fees for the selected tier as follows. Fees are exclusive of applicable taxes unless otherwise stated. Company shall invoice Client in accordance with the schedule below and Client shall pay undisputed amounts in accordance with this Section.

Total Fee for Selected Tier Payment Schedule Payment Due (Net Days) Late Fee / Interest

Invoices not paid within the payment terms shall accrue interest at the rate specified above and Client shall reimburse Company for reasonable collection costs, including attorneys' fees, for amounts not timely paid. Disputed amounts must be raised in writing within ten (10) days of invoice receipt; undisputed portions remain due and payable.

TERM & TERMINATION

The term of this Agreement shall commence on and continue until unless earlier terminated in accordance with this Agreement.

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 if the breaching party fails to cure such breach within thirty (30) days after written notice of breach. Company may suspend performance and withhold deliverables for nonpayment until past due amounts are remitted.

Upon termination, Client shall pay Company for all services performed and expenses incurred through the effective date of termination. Sections relating to payment, confidentiality, limitation of liability, and governing law shall survive termination.

CONFIDENTIALITY

Each party (the "Receiving Party") shall hold in confidence and not disclose to any third party any non-public, proprietary, or confidential information disclosed by the other party (the "Disclosing Party") that is marked confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure. Confidential information does not include information that (a) is or becomes publicly available without breach, (b) was lawfully in the Receiving Party's possession prior to disclosure, (c) is received from a third party without restriction, or (d) is independently developed without use of the Disclosing Party's confidential information.

The Receiving Party shall take commercially reasonable measures to protect the confidentiality of such information, not less than those used to protect its own confidential information of a similar nature. The obligations in this Section shall survive termination for a period of years.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to its choice-of-law principles. The parties submit to the exclusive jurisdiction of the state and federal courts located in that State for any disputes arising under or in connection with this Agreement.

ENTIRE AGREEMENT

This Agreement, together with any exhibits or attachments executed by the parties, constitutes the entire agreement between the parties relating to the subject matter hereof and supersedes all prior and contemporaneous agreements, proposals, and communications, whether written or oral. No amendment or modification shall be binding unless in writing and signed by authorized representatives of both parties.

MISCELLANEOUS PROVISIONS

Assignment: Neither party may assign this Agreement without the prior written consent of the other, except that Company may assign to an affiliate or in connection with a merger or sale of substantially all of its assets. Notices shall be in writing and delivered to the addresses set forth above. If any provision of this Agreement is held invalid, the remaining provisions shall remain in full force and effect.

Additional Terms or Notes

Company (Print Name):

By:

Date:

Client (Print Name):

By:

Date:

What the Business Tier Agreement Is and When It Applies

A Business Tier Agreement is a contractual document that defines the service level, pricing tier, permitted usage, and legal responsibilities between a vendor and a business customer. It typically covers access rights, data handling, support levels, billing terms, renewal and termination mechanics, and any regulatory obligations tied to the service. For electronic execution, the Agreement can be signed under the ESIGN Act (15 U.S.C. ch. 96) and the applicable state UETA statute where intrastate law governs. Parties often pair it with a Statement of Work or Service Level Agreement to document operational details.

Why a Clear Business Tier Agreement Matters

A clearly written Business Tier Agreement reduces disputes by allocating responsibilities, specifying deliverables, and setting measurable service expectations. It provides legal certainty about billing, usage limits, and data handling practices and supports compliance with industry rules like HIPAA or SEC recordkeeping where relevant.

Typical Parties and Roles for This Agreement

The Business Tier Agreement is used by vendors, procurement teams, legal departments, and authorized signatories at customer organizations to formalize subscription terms and operational commitments.

Vendor commercial or account managers who define features in the chosen tier and set billing cycles.
Customer procurement or vendor management teams who negotiate limits, SLAs, and renewal terms.
In-house or external counsel who review liability allocation, indemnities, and data protections.

Final signatures should come from persons authorized under the customer or vendor signing authority to bind the organization; mis-signed agreements risk enforcement challenges.

Who Can Sign and Why Their Role Matters

Authorized Officer

A corporate officer or other person expressly authorized in corporate resolutions should sign to bind the company. Using an unauthorized person can lead to avoidable disputes over enforceability and may require ratification by the board or senior management.

Contract Manager

A procurement or contract manager may sign under delegated authority with documented limits. Ensure the delegation is in writing and matches the Agreement s signature block to prevent challenges based on lack of authority.

Essential Components to Include in a Business Tier Agreement

A professional Agreement groups commercial, operational, and legal terms so both parties understand expectations. Include these six parts to reduce ambiguity and support enforceability.

Commercial Terms

Clearly state the tier name, price, billing frequency, renewal mechanics, any usage thresholds, and how overage charges are calculated to avoid billing disputes and enable predictable budgeting.

Service Levels

Define measurable SLAs such as uptime targets, response and resolution times, and credits or remedies when service levels are missed so performance expectations are enforceable.

Data Protection

Describe data handling, security controls, and breach notification obligations, and identify whether a Business Associate Agreement or equivalent privacy addendum is required under HIPAA or other rules.

Intellectual Property

Allocate ownership of preexisting IP, newly created deliverables, and any license rights; include restrictions on use, third-party components, and any open-source obligations.

Termination and Remedies

Specify termination for convenience and cause, cure periods, post-termination data access or export, and limitations of liability, including caps and exclusions that reflect negotiated risk allocation.

Compliance and Audit Rights

Include clauses for regulatory compliance, right to audit for high-risk industries, and cooperation for subpoenas or lawful requests to ensure statutory obligations are met.

Required Agreement Information at a Glance

Parties: Full legal entity names

Effective Date: MM/DD/YYYY format

Scope: Products and features included

Billing: Price, currency, cycle

Contact: Designated account/success rep

Signature: Name, title, date

Step-by-Step: Completing a Business Tier Agreement

Follow these steps in sequence to prepare, review, and finalize the Agreement while preserving evidentiary support for electronic execution.

01

Draft: Populate commercial terms and attach exhibits.
02

Review: Legal and procurement verify obligations.
03

Authorize: Confirm signing authority and delegation.
04

Execute: Sign electronically and store audit trail.

How to Configure an Online Signing Workflow

Set up the digital workflow to match the Agreement s approval path and authentication needs before sending for signatures.

Field	Configuration
Signer Order	Sequential or parallel
Authentication	Email link, SMS code, or KBA
Required Fields	Signatures, dates, initials
Retention	Enable audit trail and PDF export

Digital Signing Considerations for the Agreement

Select eSignature settings that balance signer convenience with authentication strength and regulatory compliance.

Authentication Strength: Use multi-factor or KBA for higher-risk signings.
Audit Trail: Capture timestamps, IPs, and signer actions.
Document Formats: Support PDF, DOCX, and secured exports

Where to Send and How Execution Typically Proceeds

Define routing and destination for the fully executed Agreement, including primary recipients and where copies and records are stored after signing.

Primary Recipient: Designated contract repository or legal department
Billing Contact: Accounts payable address and email
Operational Owner: Assigned account manager or technical lead
Archival Storage: Secure document management system

Common Deadlines and Timing to Track

Monitor dates that create obligations or trigger rights such as renewal deadlines, notice periods, and payment due dates to avoid unintended auto-renewal or termination.

Effective Date:

Contract start date in MM/DD/YYYY

Billing Cycle:

Monthly, quarterly, or annual payment due

Renewal Notice:

Notice period before auto-renewal

Cure Period:

Time to remedy material breach

Termination Date:

Last effective day after notice

Common Mistakes to Avoid

Using a trade name instead of the legal entity name creates ambiguity and can delay enforcement.
Failing to specify renewal mechanics leads to disputes over automatic renewal and billing.
Permitting unclear data handling terms can cause compliance gaps in HIPAA or state privacy laws.
Not documenting signing authority increases the risk that a signature will be challenged.

Risks if the Agreement Is Incorrect or Incomplete

Breach Liability: Exposure to damages and termination rights

Regulatory Fines: HIPAA or industry penalties possible

Tax Consequences: Incorrect billing may affect taxable income

Enforcement Delay: Disputes slow remedy and recovery

Data Loss: Insufficient retention risks evidence gaps

Reputational Harm: Contract disputes can affect customer trust

Sample eSignature Pricing and Feature Comparison for Agreement Execution

Compare common vendor criteria for executing and managing Business Tier Agreements; signNow is listed first per comparative format and available plan data.

	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	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 Business Tier Agreements

Answers to common questions about signing, authority, and digital execution are provided to reduce execution delays and compliance risk.

Need help? Contact support

Can a Business Tier Agreement be signed electronically?
Yes. Electronic signatures meet legal validity under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided intent, consent, attribution, and record retention are satisfied.
What if the signatory lacks authority?
If a signer lacks authority, the agreement may be voidable by the organization. Confirm delegated signing authority in corporate resolutions or a written delegation before execution.
Is notarization required for enforceability?
Not typically for commercial service agreements. Notarization and witnesses are instrument-specific; consult state law when a notarized record or RON is needed for evidentiary reasons.
How should I store signed Agreements?
Retain a tamper-evident PDF with the audit trail and store copies in a secure DMS with access controls and regular backups to meet retention and reproduceability requirements.
What authentication level is appropriate?
Match authentication to risk: email link for low risk, SMS or KBA for moderate risk, and multi-factor or advanced methods for high-risk or regulated transactions.
Can I amend the Agreement after signing?
Yes, through a written amendment signed by authorized parties. Document the effective date of the amendment and preserve prior versions with their signatures for audit history.

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