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Business-to-Business Contract

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BUSINESS-TO-BUSINESS CONTRACT

This Business-to-Business Contract (the "Agreement") is entered into effective as of Effective Date: , by and between Client Name: , a business organized as Corporation LLC Partnership, with principal place of business at , and Service Provider Name: , a business organized as Corporation LLC Partnership, with principal place of business at .

RECITALS

WHEREAS, Client is engaged in the business of purchasing goods and/or services for commercial resale or internal business use; and

WHEREAS, Service Provider offers the goods and/or services described in this Agreement and has the capacity and expertise to perform the same subject to the terms set forth herein; and

WHEREAS, the parties desire to set forth their respective rights and obligations with respect to the services to be provided under this Agreement.

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties agree as follows:

1. DEFINITIONS

For purposes of this Agreement, the following terms shall have the meanings set forth below. "Services" means the goods, deliverables and services to be provided by Service Provider as described in Section 2. "Confidential Information" means information designated as confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure.

2. SCOPE OF SERVICES

Service Provider shall provide the Services described as follows:

3. TERM; TERMINATION

The term of this Agreement shall commence on the Effective Date and shall continue for a period of months, unless earlier terminated as provided herein. Either party may terminate for material breach if the breach is not cured within days after written notice. Termination for convenience by either party requires days' prior written notice.

4. FEES AND PAYMENT

Client shall pay Service Provider the fees set forth in this Section. The Fee for Services shall be $ payable in accordance with the payment schedule below. Invoices shall be issued and are due net days from invoice date. Late payments shall accrue interest at the lesser of 1.5% per month or the maximum rate permitted by law.

5. CONFIDENTIALITY

Each party shall maintain in confidence all Confidential Information of the other party and shall not disclose such information to any third party except to employees, contractors or advisors with a need to know and subject to obligations of confidentiality at least as protective as those in this Agreement. Confidential Information shall not include information that is or becomes generally known to the public through no fault of the receiving party, independently developed by the receiving party without use of the disclosing party's Confidential Information, or rightfully obtained from a third party not under an obligation of confidentiality.

The obligations in this Section shall survive termination or expiration of this Agreement for a period of years.

6. INTELLECTUAL PROPERTY

Unless otherwise agreed in writing, Service Provider retains all right, title and interest in any pre-existing intellectual property and in any intellectual property developed by Service Provider in the course of performing the Services ("Provider IP"). Client shall receive a non-exclusive, non-transferable license to use Provider IP solely to the extent necessary to receive the benefit of the Services during the term of this Agreement. Any Client materials provided to Service Provider remain the property of Client.

7. WARRANTIES; DISCLAIMER

Service Provider warrants that it will perform the Services in a professional and workmanlike manner in accordance with generally accepted industry standards. EXCEPT FOR THE FOREGOING WARRANTY, THE SERVICES ARE PROVIDED "AS IS" AND EACH PARTY DISCLAIMS ALL OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED, STATUTORY OR ARISING BY COURSE OF DEALING.

8. INDEMNIFICATION; LIMITATION OF LIABILITY

Each party shall indemnify, defend and hold harmless the other party and its officers, directors, employees and agents from and against any third-party claims arising out of the indemnifying party's gross negligence or willful misconduct or material breach of this Agreement. The aggregate liability of each party for damages arising out of or related to this Agreement shall not exceed the fees actually paid by Client to Service Provider under this Agreement during the month period preceding the event giving rise to the claim. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES.

9. INSURANCE

During the term of this Agreement, each party shall maintain at its own expense insurance coverage appropriate to its business, including commercial general liability insurance and, if applicable, professional liability insurance. Upon request, either party shall provide certificates of insurance evidencing such coverage.

10. NOTICES

All notices under this Agreement shall be in writing and delivered by hand, certified mail (return receipt requested), or nationally recognized overnight courier to the addresses below or to such other address as either party may designate by notice.

11. DATA PROTECTION

To the extent either party processes personal data in connection with this Agreement, the parties will comply with applicable data protection laws. Each party shall implement appropriate technical and organizational measures to protect personal data against unauthorized or unlawful processing and against accidental loss, destruction or damage.

12. ASSIGNMENT

Neither party may assign or transfer 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 this Agreement in connection with a merger, acquisition or sale of all or substantially all of its assets.

13. FORCE MAJEURE

Neither party shall be liable for any failure or delay in the performance of its obligations under this Agreement to the extent such failure or delay is caused by circumstances beyond its reasonable control, including acts of God, pandemics, government actions, labor disputes, or failures of suppliers or carriers, provided that the affected party gives prompt notice to the other and uses commercially reasonable efforts to resume performance.

14. AMENDMENT; WAIVER

Any amendment or modification of this Agreement must be in writing and signed by authorized representatives of both parties. No failure or delay by either party in exercising any right under this Agreement shall operate as a waiver of that right unless set forth in a writing signed by the party waiving the right.

15. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflict of law principles.

16. ENTIRE AGREEMENT; SEVERABILITY

This Agreement, together with any exhibits or attachments 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 oral or written. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

17. COUNTERPARTS

This Agreement may be executed in counterparts, each of which shall be an original but all of which together shall constitute one and the same instrument. Signatures delivered by electronic means shall be binding.

18. MISCELLANEOUS

The relationship of the parties is that of independent contractors. Nothing in this Agreement creates a partnership, joint venture, agency or employment relationship between the parties. Each party shall comply with all applicable laws and regulations in performing its obligations under this Agreement.

Client Printed Name:

By:

Date:

Service Provider Printed Name:

By:

Date:

Enter text✕

What a Business-to-Business Contract Is and When It’s Used

A Business-to-Business Contract is a written agreement between two commercial entities that defines the scope of work, obligations, payment, liability, and dispute-resolution procedures. It formalizes commercial relationships—such as vendor services, supply agreements, joint ventures, or software licensing—and creates enforceable rights and duties under contract law.

Why a Clear B2B Contract Matters and Its Legal Basis

A well-drafted Business-to-Business Contract reduces ambiguity, limits exposure to disputes, and documents performance expectations. Electronic signatures executed under the ESIGN Act (15 U.S.C. §7001) or a state UETA framework create legally enforceable signatures when intent, consent, attribution, and retention are satisfied.

Why a Clear B2B Contract Matters and Its Legal Basis

Who typically prepares and signs B2B Contracts

Businesses of many sizes use B2B contracts; internal teams coordinate drafting, review, and signature workflows.

  • Procurement and Sourcing teams — Manage vendor selection, negotiate commercial terms, and maintain supplier records for audit and renewal.
  • Legal and Compliance departments — Review liability, IP, indemnity, and governing law clauses; approve final redlines and signature authority.
  • Finance and Accounting — Confirm payment terms, tax treatment, invoicing requirements, and internal approvals for budget and credit.

Clear role division speeds review, reduces bottlenecks, and ensures the contract is enforceable and aligned with company policy.

Typical signers and their roles

Authorized Signatory — CFO

A chief financial officer or delegated officer commonly holds contract signature authority for monetary commitments. Their signature confirms budget approval and credit terms and creates binding payment obligations for the company.

Contract Administrator — Legal Counsel

In-house or external counsel often reviews and certifies contract language, negotiates risk allocation, and ensures compliance with governing law before a final signature is permitted.

Essential sections every B2B Contract should include

A professional agreement is organized into discrete sections so reviewers can quickly find obligations, limits, timeline, and remedies. The following components are foundational for enforceability and operational clarity.

Parties

Full legal entity names, entity type, and principal address for each contracting party.

Scope of Work

Precise deliverables, service levels, milestones, and acceptance criteria; avoid vague or open-ended descriptions.

Payment Terms

Price, invoicing cadence, currency, late fees, taxes, and any credit or holdback provisions.

Term and Termination

Start/end dates, renewal mechanics, and termination rights for convenience or for cause.

Liability and Indemnity

Caps on damages, exclusions, indemnification obligations, and insurance requirements.

Governing Law and Dispute Resolution

Chosen state law, venue, arbitration/mediation clauses, and waiver of jury trial if applicable.

Required data fields for a valid B2B Contract

Party Legal Name: Exact registered entity name
Business Address: Street, city, state, ZIP
Tax ID / EIN: Employer Identification Number
Scope Summary: Short description of services
Payment Terms: Net days, currency
Effective Date: MM/DD/YYYY format

Step-by-step: complete a Business-to-Business Contract

Follow a concise sequence to prepare, review, execute, and archive the contract so obligations are clear and signatures are legally attributable.

  • 01
    Draft: Assemble parties, scope, payment, and term details.
  • 02
    Internal Review: Legal and finance confirm risk allocation and pricing.
  • 03
    Negotiate: Track redlines and resolve material points before finalization.
  • 04
    Execute: Collect authorized signatures, date the document, and distribute copies.

Configure an online signing workflow for this contract

Set up the digital workflow to mirror the review and approval flow so signatures follow the required ordering and authentication levels.

Field Configuration
Authentication Email link or SMS code; use stronger ID for critical contracts.
Signing Order Specify sequential or parallel signer order.
Notifications Enable reminders and completion notifications to parties.
Template Save redlined final as a reusable template for repeat use.

Where to send, file, and manage signed B2B Contracts

Contracts should be routed to centralized repositories and retained by legal, procurement, and finance for access, audit, and enforcement.

  • Upload: Store the executed contract in your document management system.
  • Notify: Send final copies to legal, procurement, and finance.
  • File: Place in offsite backup and centralized contract repository.
  • Monitor: Track milestones, renewals, and notice deadlines.

Technology requirements for secure e-signature and recordkeeping

Use a platform that supports secure signatures, tamper-evident PDFs, and detailed audit trails to document intent and attribution.

  • File formats: PDF, DOCX, or HTML
  • Integrations: CRM and cloud storage connectors
  • Encryption: TLS in transit; AES-256 at rest

Common contract timelines and deadline types to track

Identify critical dates in the contract and calendar them to ensure compliance with notice, invoice, and renewal obligations.

Effective Date:

Date when obligations commence

Delivery / Milestone Dates:

Dates for performance and acceptance

Payment Due Date:

Net 30, Net 45, or agreed terms

Termination Notice:

Advance notice required for convenience terminations

Renewal Window:

Automatic renewal or opt-out deadlines

Key milestones from negotiation to archive

A milestone timeline clarifies sequence and ownership from initial draft through post-execution obligations.

01

Negotiation and Redlines

Parties exchange edits and resolve material terms before approval.

02

Internal Approvals

Legal and finance complete sign-off and verify authority to bind.

03

Execution

All authorized signatories sign and dates are recorded.

04

Post-Execution Actions

Distribute executed copies, set reminders, and file securely.

Common mistakes that delay or undermine B2B Contracts

  • Using informal or abbreviated party names that do not match registered legal entities, which creates ambiguity about who is bound.
  • Failing to state specific deliverables or acceptance criteria, which leads to disputes over performance and payments.
  • Omitting clear payment terms or tax treatment, which causes invoicing errors and potential withholding or penalties.
  • Neglecting to verify signature authority, resulting in unsigned or voidable agreements and delayed enforcement.

Immediate risks of an incorrect or incomplete contract

Breach Damages: Monetary liability
Termination Risk: Loss of revenue
Indemnity Exposure: Third-party claims
Tax Withholding: Backup withholding
Regulatory Fines: Industry sanctions
Contract Voidance: Unenforceable terms

Pricing and capability snapshot for common eSignature vendors

Compare baseline pricing and a few plan-level capabilities relevant to contract execution and compliance; signNow is shown first per provider ordering rules.

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 trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes (Business Premium) Yes Yes Yes Varies
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes (BAA available) Yes (BAA available) Varies by plan Varies by plan Varies by plan
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Real-world examples of B2B contracts and outcomes

These examples show how organizations used digital contract workflows to speed execution and maintain compliance.

Optica Ventures LLC

Optica simplified execution across investors and partners using a standard contract template

  • Faster turnaround on investor documents
  • The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers.

Xerox

Xerox integrated contract signing into NetSuite to reduce manual processing

  • Templates plus integration ensured consistent data flow
  • airSlate SignNow provides us with the flexibility needed to get the right signatures on the right documents, in the right formats, based on our integration with NetSuite.

Practical tips to prepare and execute B2B Contracts efficiently

Adopt standard clauses and a template library to reduce rework, and match signature methods to risk and regulatory needs.

Use standardized templates
Maintain approved templates for common contract types to reduce negotiation time and ensure consistent risk allocation across the company.
Confirm signature authority
Verify signer delegation and corporate authorization before circulation to avoid invalid or unenforceable signatures and unnecessary delays.
Match authentication to risk
Use stronger signer authentication (SMS, KBA, or ID proofing) for high-value contracts or where regulatory rules demand higher assurance.
Document the audit trail
Preserve timestamps, IP logs, and certificate of completion to demonstrate intent, attribution, and preservation for enforcement or audit.

Frequently asked questions about Business-to-Business Contracts

Answers to common legal, process, and technical questions encountered when preparing and signing B2B Contracts.


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