Is an electronic signature legally valid?

Yes. Under the federal ESIGN Act (15 U.S.C. §7001) and state UETA laws, electronic signatures have the same legal effect as handwritten signatures where no statutory exception applies.

When is notarization required?

Notarization depends on state and the document's legal purpose. If state law or a party requires a notarized acknowledgement, follow local notary rules, including RON where authorized.

Do I need a HIPAA addendum?

If the agreement involves protected health information, include a HIPAA-compliant business associate agreement (BAA) and verify the eSignature vendor supports HIPAA (BAA required).

How do I correct a signed agreement?

Do not alter an executed copy. Prepare an amendment signed by all parties or a replacement agreement; document reasons for the change in writing to avoid disputes.

Who is authorized to sign?

An authorized signatory must have corporate authority. Include signer capacity (title) in the signature block to confirm authority and reduce later challenges.

How can the agreement be revoked or cancelled?

Follow termination clauses in the agreement. For immediate cessation of operations, notify the counterparty per the contract's notice provisions and preserve evidence of the notice.

Electronic Signature
Templates
Miscellaneous
Business Use Air Power Agreement

Business Use Air Power Agreement

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

BUSINESS USE AIR POWER AGREEMENT

This Business Use Air Power Agreement (the Agreement) is entered into as of by and between Provider Name: with principal place of business at and Client Name: with principal place of business at .

RECITALS

WHEREAS, Provider owns, operates, or has lawful access to certain aerial power assets, equipment, and related operational capability described herein (the Air Power Assets); and

WHEREAS, Client requires the use of Provider's Air Power Assets for lawful business operations and desires to engage Provider to provide and operate such Air Power Assets on the terms set forth in this Agreement; and

WHEREAS, Provider is willing to provide, and Client is willing to accept, the provision and operation of Air Power Assets under the terms, conditions, and limitations set forth in this Agreement.

SCOPE OF WORK

Provider shall provide the Air Power Assets and associated services as described below. Services may include delivery, operation, maintenance, remote operation, inspection, repair, piloting, telemetry, and data capture as agreed. Provider will perform services in a professional manner and in compliance with applicable laws and regulations.

Detailed Scope of Work

PAYMENT TERMS

Client shall pay Provider the fees set forth in this section for the services and use of Air Power Assets. Fees are exclusive of applicable taxes unless otherwise stated.

Total Fee Deposit / Retainer (if any) Payment Schedule and Invoicing

Late payments shall accrue interest at the rate of on outstanding amounts, or the maximum rate permitted by law, whichever is less. Client shall also be responsible for all collection costs, including reasonable attorneys' fees.

TERM AND TERMINATION

This Agreement commences on and continues until unless earlier terminated in accordance with this Agreement.

Either party may terminate this Agreement for convenience upon days' prior written notice. Either party may terminate for material breach if the breaching party fails to cure the breach within 30 days after receipt of written notice specifying the breach. Termination shall not relieve Client of payment obligations for services performed and expenses incurred prior to termination.

Upon termination, Client shall promptly return or, at Provider's direction, allow Provider to recover Air Power Assets and any Provider-owned property. Provider may suspend services immediately if Client fails to pay amounts when due.

CONFIDENTIALITY

Each party (the Receiving Party) shall keep confidential all non-public information disclosed by the other party (the Disclosing Party) that is designated as confidential or that, by its nature, should reasonably be considered confidential (Confidential Information). Confidential Information excludes information that: (a) is or becomes publicly available other than by breach of this Agreement; (b) was lawfully in the Receiving Party's possession prior to disclosure; (c) is independently developed by the Receiving Party without use of the Disclosing Party's Confidential Information; or (d) is required to be disclosed by law or court order, provided the Receiving Party gives prompt written notice and cooperates with any protective measures.

The Receiving Party shall use Confidential Information solely for the purposes of performing its obligations under this Agreement and shall limit access to those employees, contractors, and agents who have a need to know and who are bound by confidentiality obligations at least as protective as those in this Agreement. These obligations survive termination for a period of three (3) years, except for trade secrets which shall be protected for as long as they remain trade secrets.

INSURANCE, INDEMNITY, AND LIABILITY

Provider shall maintain insurance coverage appropriate to the services and Air Power Assets, including commercial general liability and aviation/operations insurance where applicable. Provider shall provide certificates upon reasonable request.

Each party shall indemnify, defend, and hold harmless the other party from and against any third-party claims, damages, liabilities, and expenses arising from the indemnifying party's gross negligence, willful misconduct, or breach of this Agreement. Neither party shall be liable to the other for consequential, incidental, indirect, or punitive damages, except for liability arising from willful misconduct or fraud.

COMPLIANCE AND SAFETY

Provider shall operate the Air Power Assets in compliance with applicable laws, rules, and safety standards. Client shall provide accurate information regarding site conditions and shall cooperate to ensure safe operations. Client assumes responsibility for selecting locations, providing access, and obtaining consents necessary for performance of services.

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. The parties consent to the exclusive jurisdiction of the state and federal courts located within that state for any dispute arising out of or relating to this Agreement.

ENTIRE AGREEMENT; AMENDMENT

This Agreement, including any exhibits, schedules, or statements of work expressly incorporated, constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior and contemporaneous agreements, proposals, and communications. No amendment or waiver shall be effective unless in writing and signed by authorized representatives of both parties.

NOTICES

All notices under this Agreement shall be in writing and delivered to the addresses set forth at the beginning of this Agreement or to such other address as a party designates by notice to the other. Notices are effective upon personal delivery, overnight courier, or three (3) days after deposit in the U.S. mail, postage prepaid.

MISCELLANEOUS PROVISIONS

If any provision of this Agreement is held unenforceable, the remainder will remain in full force and effect. The parties are independent contractors and nothing herein creates a partnership, joint venture, or employment relationship. Neither party may assign this Agreement without the other's prior written consent, except that Provider may assign to an affiliate or in connection with a sale of substantially all its assets.

Provider Printed Name:

By:

Date:

Client Printed Name:

By:

Date:

What the Business Use Air Power Agreement Covers

The Business Use Air Power Agreement is a commercial contract that sets the terms for business-purpose access to and operation of aircraft, drones, or other powered aerial systems. It defines parties, scope of authorized activities, approved equipment, insurance and liability allocations, safety and compliance obligations, and any operational limits such as geofenced areas or hours of use. The agreement typically references applicable aviation and safety regulations, specifies documentation required before operations begin, and establishes procedures for incident reporting, recordkeeping, and dispute resolution to reduce operational and regulatory risk.

Why organizations use a Business Use Air Power Agreement

A clear written agreement reduces ambiguity about permitted uses, insurance responsibility, and regulatory compliance, and it documents approvals needed for commercial aerial operations.

Typical parties and stakeholders

Parties use the contract to assign operational roles, confirm insurance coverage, and create an auditable compliance trail.

Commercial operators and fleet managers responsible for maintenance and crew qualifications.
Service purchasers such as contractors, surveyors, real estate firms, and media production companies.
Insurers, risk managers, and in-house legal teams overseeing liability and compliance.

Core elements to include in the agreement

A professional Business Use Air Power Agreement groups operational, legal, and administrative terms so both operators and customers understand roles, expectations, and remedies.

Parties

Full legal names and entity types for operator and client, including addresses and contact information for operational notices.

Scope of Use

Detailed description of permitted operations, equipment identifiers, geographic limits, flight altitudes, time windows, and prohibited activities.

Term & Termination

Start and end dates, renewal mechanics, and termination rights for cause or convenience, with notice periods and wind-down procedures.

Insurance & Liability

Minimum insurance limits, required endorsements, who bears premiums, certificate delivery timing, and indemnity allocations between parties.

Safety & Compliance

Mandated certifications, pilot qualifications, maintenance logs, adherence to FAA operations rules, and incident reporting obligations.

Fees & Payment

Rate schedule, invoicing terms, expense reimbursement, late-payment remedies, and conditions that permit withholding or setoffs.

Essential information to capture on the form

Party Legal Names: Exactly as on government records

Equipment ID: Tail number or serial

Insurance Certificate: Policy number and carrier

Pilot Qualifications: License type and expiry

Operational Area: Address or geofence

Effective Date: MM/DD/YYYY

Step-by-step: completing the Business Use Air Power Agreement

Follow these steps to prepare a clear, enforceable agreement and avoid delays before the first commercial flight.

01

Gather documents: Collect IDs, equipment registration, and insurance certificates.
02

Define operations: Specify locations, times, and permissible payloads.
03

Assign responsibilities: Clarify who provides training, maintenance, and incident response.
04

Execute and distribute: Get all signatures and provide copies to insurer and operations team.

Configuring an online workflow for this agreement

Set up template fields, signer order, and authentication to match your operational and compliance requirements before sending.

Field	Configuration
Template	Reusable document with locked core clauses
Signature Order	Sequential signing: operator then client
Authentication	Email + SMS code or stronger MFA
Expiration	Set link expiry to limit risk

Where to send or file completed agreements

After execution, distribute copies to key stakeholders and retain a central record for regulatory and insurance purposes.

Operator Records: Maintain contracts in operations and maintenance files.
Client Files: Provide signed copy to contracting client for their records.
Insurer Submission: Send certificate and signed agreement to carrier or broker.
Corporate Archive: Store in company records with access controls and retention schedule.

Digital signing and technical file formats

Use an eSignature provider that captures timestamps, IP addresses, and a complete audit trail to support enforceability and compliance.

Supported Formats: PDF, DOCX, HTML, Excel
Integrations: Salesforce, NetSuite, Microsoft 365, Google Workspace
Auth & Security: TLS in transit and AES-256 at rest

Key timelines and response deadlines to track

Track operational and administrative deadlines to ensure coverage and continued compliance before work begins and during the contract term.

Effective Date Entry:

Set to MM/DD/YYYY; governs start of obligations and insurance coverage.

Insurance Proof Deadline:

Certificate must be delivered before the first scheduled operation.

Permit Filings:

Secure any local flight authorizations or waivers as required by jurisdiction.

Renewal Notices:

Send renewal or termination notice per contract, commonly 30 days prior.

Record Retention:

Preserve operational logs and agreements per retention policy.

Common preparation and execution mistakes

Failing to list exact equipment identifiers, which creates ambiguity about what is covered under insurance and maintenance obligations.
Using vague scope language such as 'general aerial support' instead of specifying permitted tasks, locations, and altitude limits.
Not confirming certificate of insurance expiration dates before operations begin, leaving parties exposed to uninsured losses.
Omitting signature capacity or authority lines, causing enforceability questions when a signer lacks corporate authority.

Potential contractual and regulatory consequences

Contract Breach: Damages and termination remedies

Regulatory Fines: FAA civil penalties for noncompliance

Insurance Lapse: Direct liability exposure

Third-Party Claims: Personal injury and property loss

Operational Downtime: Revenue and schedule impact

Tax Reporting: Income or withholding obligations may apply

E-signature platform comparison for executing this agreement

Compare pricing and key capabilities across common eSignature vendors; signNow is listed first per provider naming 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 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
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Frequently asked questions about execution and validity

Answers to common questions about enforceability, eSigning, notary needs, and updating Business Use Air Power Agreements.

Need help? Contact support

Is an electronic signature legally valid?
Yes. Under the federal ESIGN Act (15 U.S.C. §7001) and state UETA laws, electronic signatures have the same legal effect as handwritten signatures where no statutory exception applies.
When is notarization required?
Notarization depends on state and the document's legal purpose. If state law or a party requires a notarized acknowledgement, follow local notary rules, including RON where authorized.
Do I need a HIPAA addendum?
If the agreement involves protected health information, include a HIPAA-compliant business associate agreement (BAA) and verify the eSignature vendor supports HIPAA (BAA required).
How do I correct a signed agreement?
Do not alter an executed copy. Prepare an amendment signed by all parties or a replacement agreement; document reasons for the change in writing to avoid disputes.
Who is authorized to sign?
An authorized signatory must have corporate authority. Include signer capacity (title) in the signature block to confirm authority and reduce later challenges.
How can the agreement be revoked or cancelled?
Follow termination clauses in the agreement. For immediate cessation of operations, notify the counterparty per the contract's notice provisions and preserve evidence of the notice.

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