Can this agreement be signed electronically?

Yes. Electronic signatures are legally enforceable in the U.S. under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided intent, consent, attribution, and reliable record retention are present.

When is notarization required?

Notarization is often required for real-property instruments or as specified by state law; requirements vary by state, so verify local notary rules before execution.

Do I need a Business Associate Agreement for health data?

If the agreement permits sharing protected health information, include a BAA and follow HIPAA requirements, including the 6-year retention rule under 45 CFR §164.530(j).

What happens if names or authority are incorrect?

Mismatched party names or unauthorized signers risk unenforceability; correct errors promptly and, if necessary, obtain re-execution by an authorized representative.

How long should I keep the signed agreement?

Retain for the term plus at least 3 years; follow 3-year IRS baseline (IRC §6501(a)) and industry-specific rules for longer retention periods.

How can I revoke or amend the agreement?

Use the amendment or termination process stated in the agreement. Mutual consent and documented amendment signatures are typically required to change terms or revoke access.

Electronic Signature
Templates
Miscellaneous
Business Use Agreement

Business Use Agreement

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

BUSINESS USE AGREEMENT

This Business Use Agreement (the "Agreement") is made effective as of by and between Licensor Name: with principal address at and Licensee Name: .

WHEREAS

WHEREAS, Licensor owns and controls the business premises, facilities, assets, or intellectual property described in this Agreement and is willing to permit Licensee to use such business resources under the terms set forth below; and

WHEREAS, Licensee desires to obtain limited business use rights for the purpose of conducting the operations, events, or activities described in the Scope of Work and to pay the fees specified herein.

SCOPE OF WORK

Description of permitted business use

PAYMENT TERMS

Payment amount Payment schedule (due dates, invoicing, and method)

Late payment shall accrue interest at the lesser of (a) the greater of one and one-half percent (1.5%) per month or (b) the maximum rate permitted by applicable law. In addition to interest, Licensee shall be responsible for reasonable collection costs, including attorneys' fees, incurred by Licensor in enforcing payment.

Late fee or interest rate

TERM AND TERMINATION

This Agreement commences on and, unless earlier terminated in accordance with this Agreement, expires on .

Notice period for termination (days)

Either party may terminate this Agreement immediately for material breach if the breaching party fails to cure such breach within the notice period specified above following written notice. Licensor may also terminate immediately if Licensee's use creates a hazard, regulatory violation, or material risk to property or third parties.

CONFIDENTIALITY

"Confidential Information" means all non-public information disclosed by either party to the other in connection with this Agreement, whether written or oral, that is designated confidential or that reasonably should be understood to be confidential. Each party shall: (a) hold Confidential Information in strict confidence; (b) use it solely for performance under this Agreement; and (c) not disclose it to any third party except to employees, agents, or contractors who have a need to know and who are bound by confidentiality obligations no less restrictive than those contained herein. Confidential Information shall not include information that is (i) publicly known through no fault of the receiving party, (ii) rightfully received from a third party without restriction, or (iii) independently developed without use of the disclosing party's Confidential Information.

INDEMNIFICATION AND INSURANCE

Licensee shall indemnify, defend, and hold harmless Licensor, its officers, directors and agents from and against all claims, liabilities, losses, costs and expenses (including reasonable attorneys' fees) arising out of Licensee's use of the premises or provided resources, except to the extent caused by Licensor's gross negligence or willful misconduct. Licensee shall maintain, at its expense, commercial general liability insurance with limits customary for the use permitted herein and shall provide evidence of such insurance upon request.

NOTICES

Notices to Licensor (address for service) Notices to Licensee (address for service)

All notices required or permitted hereunder shall be in writing and shall be deemed given upon delivery by hand, by nationally recognized overnight courier, or three business days after deposit in the U.S. mail, postage prepaid, to the addresses set forth above or to such other address as either party may designate by written notice.

GOVERNING LAW

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

ENTIRE AGREEMENT

This Agreement, together with any exhibits or schedules expressly incorporated herein, constitutes the entire agreement between the parties regarding the subject matter hereof and supersedes all prior oral or written negotiations, representations, and agreements. No amendment or modification of this Agreement shall be effective unless in writing and signed by both parties.

MISCELLANEOUS

If any provision of this Agreement is held invalid or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall remain in full force and effect. The parties acknowledge that they have had the opportunity to seek independent legal counsel and that the terms hereof are contractual and not mere recitals.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates set forth below.

Licensor Printed Name:

By:

Date:

Licensee Printed Name:

By:

Date:

What a Business Use Agreement Covers

A Business Use Agreement is a formal contract that sets the terms under which one party uses services, systems, premises, or data owned by another business. It defines permitted uses, responsibilities, limitations, confidentiality, indemnities, and payment or consideration where applicable. These agreements help reduce ambiguity about access rights, data handling, liability allocation, and termination mechanics, and are commonly used when vendors, contractors, or partners require controlled access to systems, facilities, or nonpublic information.

Why a Clear Business Use Agreement Matters

A concise Business Use Agreement reduces legal risk, clarifies operational responsibilities, and documents consent for data handling. It also supports regulatory compliance by specifying security measures, recordkeeping obligations, and dispute resolution terms.

Typical parties that prepare and sign this agreement

Organizations and individuals use this agreement when third parties need access to business systems, premises, or sensitive data.

Vendors and service providers who require API or facility access to perform contracted work.
Clients or customers obtaining limited access to software, support environments, or confidential materials.
Internal teams granting contractors, auditors, or temporary staff controlled use of systems or premises.

It also serves as an audit-ready record of permitted uses, controls, and signer authorization for compliance and internal governance.

Who typically signs

Business Owner

A named company officer or authorized manager signs to bind the organization. That signer must have authority to grant access and accept liability; absent explicit delegation, a routine manager-level signature may not be sufficient for material concessions.

Corporate Counsel

Legal or compliance officers often review and sign agreements that introduce regulatory obligations (data handling, breach notification). Their signature indicates legal review and internal acceptance of risk allocations and retention requirements.

Core sections to include in a professional Business Use Agreement

A well-drafted agreement is modular: it identifies parties, scope, permitted uses, data handling, security controls, liability limits, and termination procedures to ensure enforceability and operational clarity.

Parties

Full legal names and entity types for each party, including any DBA names and the signing representative’s title to establish who is contractually bound.

Scope of Use

Precise description of allowed activities, systems or premises covered, and any restricted or prohibited actions to avoid ambiguity in performance expectations.

Data Handling

Specifications for data access, classification, retention, encryption, and breach notification obligations aligned with applicable law and industry standards.

Security Requirements

Minimum technical and administrative controls, such as encryption, access logging, MFA, and incident response responsibilities to protect shared assets.

Liability and Indemnity

Limits on damages, indemnification clauses, and allocation of responsibility for third-party claims arising from permitted uses or misuse.

Termination and Remedies

Grounds for termination, return or destruction of materials, post-termination access, and steps for dispute resolution or injunctive relief.

Step-by-step: completing a Business Use Agreement

Follow this sequence to prepare, sign, and record the agreement to minimize delays and compliance gaps.

01

Draft: Populate parties, scope, and terms using standard clauses.
02

Review: Legal and IT review for risk, security, and regulatory matters.
03

Authorize: Obtain signature from an authorized representative with delegated authority.
04

Record: Store executed copy and update access controls or provisioning systems.

How to configure an online signing workflow

A standard eSigning workflow assigns fields, signer order, and authentication to reduce errors and preserve an audit trail.

Field	Configuration
Signature Fields	Assign role-based signature and date fields for each signer.
Authentication	Choose email link, SMS code, or knowledge-based checks per risk level.
Signer Order	Set sequential or parallel signing depending on approvals required.
Audit Trail	Enable timestamp, IP logging, and a completion certificate for records.

Where to send or file the executed agreement

After execution, route copies to stakeholders, systems, and the records repository to ensure operational and legal compliance.

Counterparty: Provide an executed copy to all signers immediately after completion.
Legal / Compliance: Store a certified copy in the legal repository for disputes.
IT / Provisioning: Trigger system access or revocation based on agreement terms.
Records Management: Archive the executed file in the document retention system.

Digital delivery and file formats to support

Retain the final certified PDF with embedded audit data and keep copies in both the contract repository and relevant operational systems.

File Formats: PDF, DOCX, and PDF/A for long-term preservation.
Integrations: CRM and cloud storage integrations (Salesforce, NetSuite, Box).
Authentication Options: Email link, SMS OTP, or advanced signer verification.

Common timing expectations and deadlines

Set clear interim deadlines and milestone dates to avoid operational delays and to start retention clocks correctly.

Effective Date:

Date when rights and obligations begin; use MM/DD/YYYY format.

Execution Deadline:

Specify the date by which all parties must sign to avoid automatic termination.

Delivery to Parties:

Send executed copy within 24–72 hours after final signature.

Provisioning Deadline:

Set a date to complete access or provisioning tied to execution.

Renewal Notice:

Specify advance notice period for renewals or termination (commonly 30–90 days).

Frequent preparation errors to avoid

Leaving governing law or effective date blank, which creates ambiguity about interpretation and enforcement.
Using vague scope language such as 'as needed' without concrete activity or technical boundaries.
Failing to identify an authorized signer or using a signer without delegated authority, which can void commitments.
Overlooking data classification and PHI language; this can trigger HIPAA obligations without appropriate safeguards.

Consequences of incorrect or incomplete agreements

Unenforceability: Missing signatures or authority can render provisions unenforceable.

Regulatory Fines: HIPAA violations carry penalties and corrective action.

Tax Penalties: Incorrect reporting may trigger IRC §6721 penalties.

I-9 Violations: Incomplete employment documentation may lead to fines per 8 CFR §274a.2.

Notary Errors: Improper notarization can delay filing or recognition.

Operational Loss: Unauthorized access increases breach and liability exposure.

Common eSignature vendor comparison for executing Business Use Agreements

Feature and pricing comparisons help select an eSignature provider that meets compliance and volume needs; signNow is listed first per the comparison format.

	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	Yes, 7-day trial, no credit card	No	No	Yes, limited	Yes, limited
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Practical tips for accurate, efficient completion

Adopt consistent templates, require authorized signer verification, and store executed copies in a centralized, access-controlled repository.

Use a standard template

Maintain a reviewed template with approved clauses to reduce negotiation time and ensure consistent allocation of risk across engagements.

Verify signer authority

Confirm the signer's delegated authority in advance—board resolutions or officer delegations reduce the risk of unenforceability.

Require clear scope language

List specific systems, data categories, and time-bound access to avoid later disputes about allowed activities.

Preserve an audit trail

Keep a certified copy with timestamps and signer authentication evidence to support compliance and evidentiary needs.

Real-world examples of Business Use Agreement usage

These concise case summaries show how organizations used Business Use Agreements to clarify access, speed workflows, and preserve compliance.

Optica Ventures LLC

A midsize services firm standardized access agreements to reduce onboarding time and disputes.

The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers.
As a result, the company reduced manual sign-off steps and improved handoffs between sales and operations while keeping a single authoritative record of each access arrangement.

Xerox (NetSuite Ops)

An enterprise integrated agreements with its ERP to automate provisioning after signature.

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.
The integration reduced provisioning lag and ensured legal review was attached to each executed agreement for centralized auditability.

Frequently asked questions about Business Use Agreements

Answers to common questions about eSigning, enforceability, notarization, retention, and post-execution changes.

Need help? Contact support

Can this agreement be signed electronically?
Yes. Electronic signatures are legally enforceable in the U.S. under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided intent, consent, attribution, and reliable record retention are present.
When is notarization required?
Notarization is often required for real-property instruments or as specified by state law; requirements vary by state, so verify local notary rules before execution.
Do I need a Business Associate Agreement for health data?
If the agreement permits sharing protected health information, include a BAA and follow HIPAA requirements, including the 6-year retention rule under 45 CFR §164.530(j).
What happens if names or authority are incorrect?
Mismatched party names or unauthorized signers risk unenforceability; correct errors promptly and, if necessary, obtain re-execution by an authorized representative.
How long should I keep the signed agreement?
Retain for the term plus at least 3 years; follow 3-year IRS baseline (IRC §6501(a)) and industry-specific rules for longer retention periods.
How can I revoke or amend the agreement?
Use the amendment or termination process stated in the agreement. Mutual consent and documented amendment signatures are typically required to change terms or revoke access.

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