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Business Verification Addendum

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BUSINESS VERIFICATION ADDENDUM

This Business Verification Addendum ("Addendum") is made effective as of and supplements the Agreement between the parties.

WHEREAS

WHEREAS, Client Name: (the "Client") desires confirmation of the Client's business identity, authority and related documentation; and

WHEREAS, Service Provider Name: (the "Provider") requires verification to satisfy internal compliance and contractual requirements; and

WHEREAS, the parties agree to the terms set forth in this Addendum to document verified business information, representations, and required deliverables.

BUSINESS IDENTIFICATION

AUTHORIZED REPRESENTATIVE / CONTACT

DOCUMENTATION PROVIDED

The Business has delivered true and legible copies of the following (check all that apply):






SCOPE OF WORK

The Provider will perform verification activities limited to the scope described below. Verification may include review of submitted documents, confirmation of authorized signatory status, and records review necessary to confirm the Business's identity and authority.

PAYMENT TERMS

Verification Fee Amount: $

Late Payment Fee: on overdue balances. Client will also be responsible for reasonable costs of collection, including attorneys' fees.

TERM AND TERMINATION

Term Commencement Date: . Termination Date / End Date (if applicable): .

Either party may terminate this Addendum for convenience upon written notice to the other party delivered at least days in advance. Termination for material breach shall be effective upon notice if the breaching party fails to cure within thirty (30) days of receipt of written notice of breach.

CONFIDENTIALITY

Each party agrees that Confidential Information disclosed in connection with this Addendum shall be held in strict confidence and used solely for the purposes of performing obligations under this Addendum. Confidential Information excludes information that: (a) is or becomes generally available to the public other than as a result of a breach of this Addendum; (b) was rightfully in the receiving party's possession prior to receipt from the disclosing party; or (c) is independently developed without use of the disclosing party's Confidential Information. The receiving party shall implement reasonable safeguards to protect Confidential Information and shall restrict disclosure to employees, agents or subcontractors only on a need-to-know basis under like confidentiality obligations.

REPRESENTATIONS AND WARRANTIES

The Business hereby represents and warrants that: (a) all information and documents provided are true, complete and accurate; (b) the authorized signatory has the authority to execute this Addendum and to bind the Business to its terms; and (c) there are no pending actions or proceedings that would impair the ability of the Business to perform hereunder.

GOVERNING LAW

This Addendum shall be governed by and construed in accordance with the laws of the State of without regard to conflict of laws principles. Exclusive venue for any dispute arising under this Addendum shall be the state or federal courts located in that State.

ENTIRE AGREEMENT

This Addendum, together with the underlying Agreement and any exhibits or schedules expressly incorporated herein, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, representations and understandings, whether written or oral. No amendment shall be effective unless made in writing and signed by both parties.

CERTIFICATION

By signing below, the undersigned certifies under penalty of perjury that the information provided in this Addendum is true, correct and complete to the best of the signatory's knowledge and that the signatory has the authority to bind the business entity identified herein.

Client / Business:

By:

Date:

Provider:

By:

Date:

Enter text✕

What the Business Verification Addendum Is and Why It Exists

A Business Verification Addendum is a short contractual attachment used to confirm an organization’s legal identity and the authority of the person signing on its behalf. It typically lists entity details, formation documents, the authorized signer’s name and title, and any required evidentiary attachments (articles of incorporation, corporate resolution, or government ID). The addendum clarifies who may bind the business, establishes a contemporaneous record of verification, and is used alongside primary agreements to reduce downstream disputes over signature authority.

Why a Business Verification Addendum Matters for Contract Integrity

Using a Business Verification Addendum establishes a clear record that the signer had authority and that the counterparty relied on verifiable corporate or organizational evidence. It supports enforceability under federal e-signature law (ESIGN) and state UETA provisions by documenting intent, attribution, and retention.

Why a Business Verification Addendum Matters for Contract Integrity

Who Typically Completes a Business Verification Addendum

The addendum is commonly completed by the contracting business or its authorized representative when signature authority must be demonstrated.

  • Small business owners and founders who sign outside of established corporate channels and need to show authority to the counterparty.
  • Corporate legal or contracts teams who attach a verification addendum when non-routine signers execute agreements on behalf of the company.
  • Third-party vendors, brokers, or agents asked to provide proof of authority before onboarding or payment processing.

The document is also used by counterparties and procurement teams to standardize verification during vendor acceptance or contract signing.

Typical Signers and Their Roles

Authorized Signatory — CEO

The chief executive or designated officer whose signature binds the organization. Provide title, corporate resolution or board minutes, and government ID to confirm authority and avoid later disputes.

Document Custodian — Corporate Secretary

The corporate secretary or records officer who certifies entity formation documents and maintains records. Their attestation often accompanies a verification addendum to confirm authenticity of attachments.

Core Elements Included in a Professional Business Verification Addendum

A well-crafted addendum groups identity, authority, and supporting evidence into distinct, easily verifiable fields so counterparties can rely on the record without repeated follow-up.

Entity Information

Legal name, d/b/a, state of formation, and registration number to uniquely identify the business in public records and avoid name ambiguity.

Authorized Signer

Full printed name, job title, and a statement of authority (e.g., board resolution reference) showing the signer may bind the entity.

Supporting Attachments

List of required evidence: articles of incorporation, certificate of good standing, corporate resolution, or government-issued ID, each described and attached.

Verification Statement

A short attestation by the signer confirming the truth of the information under penalty of perjury or contractual warranty language.

Effective Date

Clear effective date of the verification to establish the timeframe for authority and any subsequent reliance by the counterparty.

Signatures and Authentication

Signature block, date, and optional notarization or electronic authentication method to strengthen evidentiary weight of the signature.

Step-by-Step: How to Complete and Validate the Addendum

A concise sequence to prepare, verify, and execute the Business Verification Addendum correctly.

  • 01
    Gather Documents: Collect formation documents and any corporate resolutions.
  • 02
    Complete Fields: Enter entity and signer details exactly as shown on records.
  • 03
    Attach Evidence: Upload clear, legible PDFs of articles and resolutions.
  • 04
    Sign and Authenticate: Sign electronically or in-person; notarize if required.

How to Configure a Digital Verification Workflow

Typical workflow settings for routing, authentication, and record capture when using an e-signature platform.

Field Configuration
Signer Authentication Email link, SMS code, or KBA depending on risk
Attachment Requirements Require PDF upload; make attachments mandatory fields
Routing Order Sequential signing: verifier then counterparty
Audit Trail Capture Record timestamps, IP addresses, and session logs

Where the Addendum Goes and Who Receives It

Routing guidance for the executed addendum and options for electronic submission, notarization, and storage.

  • Attach to Contract: Append to the primary agreement as Exhibit A.
  • Send to Counterparty: Provide signed copy to the contracting party.
  • Notarize if Required: Complete in-person or via RON as applicable.
  • Archive Official Copy: Store with contract records and entity files.

Technical Requirements for Electronic Completion and Submission

Use an e-signature platform that supports secure uploads, audit trails, and the authentication level your counterparty requires.

  • File Formats: PDF, DOCX accepted
  • Authentication Options: Email, SMS, KBA
  • Integrations: CRM and cloud storage

Integrations with systems such as Salesforce, NetSuite, Microsoft 365, Google Workspace, Box, and Procore simplify routing and long-term storage while maintaining audit logs.

Comparing eSignature Providers for Executing a Business Verification Addendum

Key plan and feature differences relevant to verification addenda and authenticated signing. signNow is placed first for vendor comparison per table conventions.

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 plan Varies by plan Varies by plan Varies by plan
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 by plan Varies by plan Varies by plan

Security and Compliance Controls to Look For When Storing Verification Records

In-Transit Encryption: TLS 1.2/1.3
At-Rest Encryption: AES-256
Regulatory Certifications: SOC 2 Type II
Privacy Compliance: GDPR & CCPA
Healthcare Standard: HIPAA (BAA required)
eSignature Standards: ESIGN, UETA, 21 CFR Part 11

Key Risks and Financial Consequences of Incomplete or Incorrect Verification

Failing to verify TIN: Triggers 24% backup withholding
Late tax forms: $60–$330 per information return
Intentional disregard: $660+ per form, no maximum
I-9 paperwork violations: $281–$2,789 per violation
Notarization errors: May invalidate signature; state-specific risk
Data breach exposure: Regulatory fines and remediation costs

Common Mistakes to Avoid When Preparing a Verification Addendum

  • Using an abbreviated or trade name instead of the registered legal entity name, which creates ambiguity and delays acceptance.
  • Failing to attach the corporate resolution or formation record cited in the signer’s attestation, prompting verification re-requests.
  • Entering the wrong effective date or backdating the document, which can undermine reliance and create enforceability issues.
  • Omitting required notarization or using an unsupported RON provider when a notarized attestation is contractually required.

Real-World Examples of Verification Addenda in Practice

These examples show how organizations used concise verification attachments to document authority and support rapid contract execution.

Optica Ventures LLC

A venture services firm attached a verification addendum to vendor contracts to confirm authorized signers and speed onboarding.

  • The addendum listed a board resolution date and attached articles of organization.
  • "The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers," said Brian Fitzgibbons, COO.

Fertility Centers of Illinois

A healthcare provider used verification addenda with appended BAAs when vendors handled patient data, ensuring clarity on who could sign.

  • The process paired the addendum with an executed BAA and proof of authority.
  • "The airSlate SignNow team has been exceptional, responsive, the API has been great, and we're extremely happy that we chose airSlate SignNow as a company," said John Butler, Founder.

Practical Timelines and Typical Processing Expectations

Typical timeframes for completing verification addenda depend on authentication level, notarization needs, and response times from signers or record custodians.

Provide on Request:

Deliver verified addendum within 7–30 days of counterparty request.

Processing Time:

Electronic completion often takes 24–72 hours including attachments.

Notary Scheduling:

In-person notary availability may add 2–5 business days.

RON Sessions:

Remote notarization typically completes within 24–48 hours.

Record Filing:

If recording or filing required, county processing varies widely.

Frequently Asked Questions About the Business Verification Addendum

Answers to common questions about execution, authentication, and what to include with the addendum.


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