Is an electronic signature valid?

Yes. Electronic signatures meet the ESIGN Act (15 U.S.C. ch. 96) and UETA standards when intent, consent, attribution, and retention are satisfied; exceptions like wills and some court filings remain excluded.

When is notarization required?

Notarization depends on state law and the subject matter; some instruments tied to real property or specific statutory forms may require acknowledgement or notarization.

Who must sign the update?

An authorized corporate officer or designated representative with authority to bind the entity should sign; attach a board resolution if authority is not clear from corporate records.

How do I correct an executed update?

Execute a subsequent amendment or corrective statement signed by the same authorized parties; do not alter the original executed copy without a formal addendum.

How long should I keep the executed agreement?

Retain for the active term plus recommended post-termination periods; follow federal rules such as IRC §6501(a) for tax-related records and HIPAA 45 CFR §164.530(j) where applicable.

Can I use remote notarization?

Remote Online Notarization is permitted in many states subject to identity-proofing and recordkeeping rules; verify the target state's RON statutes before relying on remote notarization.

Electronic Signature
Templates
Miscellaneous
Business Update Agreement

Business Update Agreement

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

BUSINESS UPDATE AGREEMENT

Parties

Client Name: Client Address: Service Provider Name: Service Provider Address:

Recitals

WHEREAS, Client Name: desires to obtain updates to its business records, operations documentation, and related advisory services; and

WHEREAS, Service Provider Name: has the expertise and capacity to perform such updates and advisory services; and

WHEREAS, the parties desire to set forth the terms and conditions under which the Service Provider will perform the business update services effective as of .

Scope of Work

The Service Provider shall perform the following services for the Client. The description below identifies the deliverables, milestones, and acceptance criteria. Any work outside this scope requires a written amendment signed by both parties.

Detailed Scope of Work:

Payment Terms

In consideration for the services described above, Client shall pay Service Provider in accordance with the following terms.

Total Contract Amount (USD): Deposit / Initial Payment (if any): Payment Schedule and Milestones:

Late payments shall accrue interest at the lesser of (i) per month or (ii) the maximum rate permitted by applicable law, calculated from the due date until paid in full. Client shall also reimburse Service Provider for reasonable collection costs.

Term and Termination

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

Start Date: End Date:

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 receipt of written notice. Either party may also terminate for convenience upon days' prior written notice to the other party. Termination does not relieve Client of its obligation to pay for services rendered and reimbursable expenses accrued through the effective date of termination.

Confidentiality

Each party (the "Receiving Party") shall keep confidential and shall not use or disclose any proprietary or confidential information of the other party (the "Disclosing Party") except as necessary to perform obligations under this Agreement. Confidential information does not include information that (i) is or becomes generally known to the public through no act or omission of the Receiving Party, (ii) was known to the Receiving Party prior to disclosure by the Disclosing Party, (iii) is independently developed by the Receiving Party without the use of the Disclosing Party's confidential information, or (iv) is required to be disclosed by law, provided the Receiving Party gives prompt notice and cooperates in any effort to limit disclosure.

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

Acknowledgement of Confidentiality:

By checking this box, the signer acknowledges receipt of, and agreement to, the Confidentiality obligations set forth above.

Governing Law; Dispute Resolution

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. The parties shall attempt in good faith to resolve any dispute arising under this Agreement by negotiation. If negotiation fails, disputes shall be resolved by binding arbitration administered in the governing state under the arbitration rules selected by the parties.

Miscellaneous; Entire Agreement

This Agreement, including any exhibits or attachments signed by the parties, 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 written or oral. No amendment, modification, or waiver shall be effective unless in writing and signed by authorized representatives of both parties.

If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect. Neither party may assign this Agreement without the prior written consent of the other party, except that either party may assign to an affiliate or in connection with a merger or sale of substantially all of its assets.

Client Printed Name:

By:

Date:

Service Provider Printed Name:

By:

Date:

What a Business Update Agreement Is

A Business Update Agreement is a written amendment or standalone document used to record changes to a company’s core information, terms, or operational contacts. Typical updates include changes to business name, principal address, authorized signatories, tax identification, banking or payment instructions, ownership percentages, and scope of services. The agreement creates a clear record that parties have reviewed and accepted the new information and can be attached to original contracts or filed with third parties to avoid confusion and operational disruption.

Why use a Business Update Agreement

A formal update document reduces disputes, preserves contract continuity, and creates an auditable record for internal controls, vendors, and regulators. It clarifies who is authorized to act and when changes take effect, which helps manage billing, compliance, and downstream integrations.

Who typically completes this agreement

The following parties commonly prepare or sign Business Update Agreements depending on their role within a transaction or organization.

Corporate administrators and operations teams who manage vendor relationships and need consistent supplier records across systems.
Finance and accounting staff who update payment details, tax identification, or remittance addresses to prevent payment errors.
External vendors, clients, or partners required to confirm contract changes, new points of contact, or revised service terms.

Use the properly authorized signer for each organization and retain documentation to support any downstream system updates or regulatory filings.

Core elements to include in a professional update agreement

A concise Business Update Agreement should include defined parties, a clear description of changes, effective date, authority representations, signatures, and any required exhibits or attachments.

Parties

Full legal names and entity types for all signatories, including any DBA names and identification of the legally responsible entity.

Scope of Update

Precise description of the fields or sections being changed (for example: mailing address, authorized signer, banking routing) with before-and-after values where possible.

Effective Date

The date when the updated information becomes operative and binding for obligations, billing, and notices.

Authority Representations

A short clause confirming that the signer has the power to bind the named entity and that any internal approvals are satisfied.

Signature Block

Name, title, signature line, and date for each authorized signatory; include corporate seal or notary details if required.

Attachments

Supporting items such as board resolutions, updated W-9s, amended exhibits, or proof of address should be referenced and attached.

How to complete a Business Update Agreement — step by step

Follow these steps to prepare, review, and execute the update with minimal friction.

01

Draft: Record original and new values clearly.
02

Verify authority: Confirm signer has approval and attach resolutions if needed.
03

Obtain signatures: Use authorized signatures and include dates.
04

Distribute and store: Send executed copies and update internal systems.

Configuring an online workflow for updates

Map the digital workflow to your internal approval steps and required verifications before sending for signature.

Field	Configuration
Signer Order	Sequential or parallel routing per internal approvals
Authentication	Email link by default; add SMS or KBA for higher assurance
Attachments	Require uploaded W-9 or bank letter as conditional field
Notifications	Auto-notify stakeholders on signing and completion

Where to send or file the executed agreement

Decide recipient lists and external filing needs before execution to ensure obligations and records are updated promptly.

Internal Records: Send executed copy to legal and finance departments.
Vendor Portal: Upload to vendor management or procurement systems.
Third Parties: Provide to banks or insurers when financial terms change.
Regulatory Filings: File with state agencies only if statute requires.

Digital signing and distribution requirements

Choose a platform that supports needed authentication, audit trails, and export formats for legal and operational requirements.

Integrations: Salesforce, NetSuite, Google Workspace
Formats: PDF, DOCX, HTML
Security: TLS 1.2/1.3, AES-256 at rest

Ensure the chosen provider supports audit trails, required signer authentication, and a retention/export workflow compatible with your compliance needs.

Typical timelines and processing expectations

Timelines vary by internal approval needs and whether external filings or bank updates are required; plan accordingly.

Internal approval window:

1–5 business days depending on required reviews

Counterparty signing:

Usually within 24–72 hours once received

Bank updates:

Allow 3–10 business days for ACH or wire changes

Vendor system update:

1–7 business days after receipt of executed agreement

Regulatory filing (if needed):

Varies by agency; check state filing rules

Common mistakes to avoid

Failing to confirm authorized signer leads to rejected updates and potential disputes over validity of the change.
Submitting incomplete supporting documents such as missing W-9 or bank letter can delay vendor setup and payment changes.
Using ambiguous language for the scope of update (for example, 'change contact details') rather than specifying fields can create interpretation disputes.
Not updating related systems (ERP, CRM, accounting) after execution causes billing errors and compliance gaps.

Risks and consequences of incorrect or missing updates

Contractual Invalidity: Update may be unenforceable if signer lacked authority

Payment Delays: Incorrect banking details can delay or misdirect payments

Tax Reporting Issues: Mismatched TINs can trigger backup withholding

Operational Disruption: Outdated contact info can prevent timely notices

Regulatory Noncompliance: Failure to file required amendments may breach statutory obligations

Data Exposure: Improper document handling can create privacy risks

Real-world examples showing how these agreements are used

Two concise examples illustrate typical scenarios where a Business Update Agreement avoids operational friction.

Vendor Banking Update

A supplier changed bank accounts and sent an update agreement to its customers specifying the new ACH details and effective date.

The buyer required a bank letter and authorized signatory confirmation.
After execution and verification the buyer updated its AP system and avoided misapplied payments and a month-long reconciliation effort.

Change of Ownership

A small business sold a 30% stake and executed an update to reflect new ownership and authorized signers.

Legal required board resolution attached.
The executed amendment clarified decision-making authority, prevented disputes with a long-term vendor, and allowed the new owner to access contractual rights without renegotiating every existing contract.

eSignature vendor comparison for executing Business Update Agreements

Compare basic pricing and common enterprise features relevant to signing and distributing Business Update Agreements; signNow is listed first for direct comparison.

	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	Yes	Yes	Yes	Yes
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 env/user/yr	Varies	Varies	Varies

Frequently asked questions about Business Update Agreements

Answers to common questions about validity, signatures, notarization, storage, and what to do when details change again.

Need help? Contact support

Is an electronic signature valid?
Yes. Electronic signatures meet the ESIGN Act (15 U.S.C. ch. 96) and UETA standards when intent, consent, attribution, and retention are satisfied; exceptions like wills and some court filings remain excluded.
When is notarization required?
Notarization depends on state law and the subject matter; some instruments tied to real property or specific statutory forms may require acknowledgement or notarization.
Who must sign the update?
An authorized corporate officer or designated representative with authority to bind the entity should sign; attach a board resolution if authority is not clear from corporate records.
How do I correct an executed update?
Execute a subsequent amendment or corrective statement signed by the same authorized parties; do not alter the original executed copy without a formal addendum.
How long should I keep the executed agreement?
Retain for the active term plus recommended post-termination periods; follow federal rules such as IRC §6501(a) for tax-related records and HIPAA 45 CFR §164.530(j) where applicable.
Can I use remote notarization?
Remote Online Notarization is permitted in many states subject to identity-proofing and recordkeeping rules; verify the target state's RON statutes before relying on remote notarization.

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