Can a checklist be signed electronically?

Yes. Electronic signatures are enforceable under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted. Ensure intent, consent, attribution, and record retention are documented to meet the four-part legal validity test.

Is a notary required for a term sheet?

Usually not. Most term sheets do not require notarization unless they create an interest in real property or require state-specific acknowledgement. Verify with counsel for jurisdictional exceptions.

What if parties' legal names differ?

Correct the legal entity name on the checklist to match tax and incorporation records. Mismatched names can impede payment, tax reporting, and enforcement.

How long should we keep the checklist?

Retain checklists for at least the contract term plus a minimum of 3 years; follow industry rules such as HIPAA's six-year retention for health records (45 CFR §164.530(j)).

What authentication is adequate for signing?

Email-based links may suffice for many commercial deals. Higher-risk transactions benefit from multi-factor authentication, knowledge-based authentication, or notarized signatures for additional assurance.

Can we update a checklist after signing?

Yes, but treat post-signature changes as amendments. Record modifications in writing and obtain signatures from authorized signers to avoid disputes over altered terms.

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Contract Term Sheet Checklist

Contract Term Sheet Checklist

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

What the Contract Term Sheet Checklist Is and When to Use It

A Contract Term Sheet Checklist is a concise, itemized guide used during contract negotiation and drafting to ensure essential commercial, legal, and administrative items are captured before preparing a full agreement. It lists parties, scope, deliverables, pricing, payment terms, key milestones, termination triggers, confidentiality and IP positions, governing law, signatures, and supporting exhibits. The checklist helps reduce oversights, standardize handoffs between deal teams and legal review, and creates a single reference for final contract drafting and sign-off, improving clarity across stakeholders before a binding agreement is executed.

Why a Checklist Improves Contract Accuracy

Using a Contract Term Sheet Checklist reduces negotiation friction and the risk of omitted terms by providing a standardized snapshot of deal essentials for legal, finance, and operations teams. It saves time during drafting, supports clearer review cycles, and creates an auditable record of agreed commercial points prior to final contract execution.

Who Typically Completes the Checklist

Final sign-off commonly requires approval from legal and the business sponsor before delivering the draft agreement to counterparties.

Sales or Business Development lead coordinating commercial terms and timelines.
Legal or Contracts specialist reviewing risk clauses and approval conditions.
Finance or Procurement confirming pricing, billing, taxes, and payment schedules.

Who Signs and Who Manages the Checklist

General Counsel

General Counsel or the in-house legal team reviews and approves legal terms on the checklist, coordinates redline strategy, and certifies that identified risks match company policy before final signatures are allowed.

Procurement Manager

A Procurement or Contract Manager ensures commercial items, pricing, delivery milestones, acceptance criteria, and vendor onboarding requirements are complete and that the checklist aligns with internal purchase controls.

Essential Sections to Include on the Checklist

A professional Contract Term Sheet Checklist groups information so reviewers can quickly confirm completeness and make decisions during negotiation rounds.

Parties

Full legal names and entity types for each contracting party, including DBA and tax identifiers where applicable, to avoid later identity mismatches.

Scope of Work

Clear summary of deliverables, performance standards, milestones, and acceptance criteria so expectations are unambiguous prior to drafting detailed statements of work.

Payment Terms

Pricing, currency, invoicing schedule, payment methods, late fees, and applicable taxes specified to prevent billing disputes during execution.

Term and Termination

Initial term, renewal mechanics, notice periods, and termination for convenience or cause clauses to define lifecycle and exit options.

Confidentiality and IP

Confidential information scope, permitted uses, IP ownership or assignment, and any licensing terms to protect proprietary rights.

Governing Law

Chosen state law, dispute resolution method (court or arbitration), and venue preferences to control post-signature enforcement mechanics.

Security, Compliance, and Authentication Elements

Encryption: AES-256 at rest

Transport: TLS 1.2/1.3 in transit

Audit Trail: Timestamped signature logs

HIPAA: BAA required for PHI

Authentication: Multi-factor options

Retention: Tamper-evident storage

Step-by-Step: Complete the Checklist Before Contract Drafting

Follow these sequential steps to move from commercial agreement in principle to a draft contract ready for review.

01

Capture Deal Terms: Record pricing, scope, and milestones agreed in negotiation.
02

Confirm Compliance Needs: Identify HIPAA, export, tax, or sector-specific requirements.
03

Route for Legal Review: Send completed checklist to legal with supporting docs.
04

Prepare Draft: Draft agreement using checklist as binding inputs.

How the Checklist Integrates with Your Contract Workflow

The checklist typically plugs into the contracting workflow to reduce rework and speed approvals across teams.

Initiation: Deal owner opens checklist during initial term sheet discussion.
Collaboration: Finance and legal add required clarifications and approvals.
Drafting: Legal produces draft using checklist as source of truth.
Execution: Final checklist attached to executed contract for records.

Digital Workflow Settings to Support the Checklist

Configure your e-signature workflow and access controls so the checklist is tracked and auditable through execution.

Field	Configuration
Signer Order	Sequential or parallel routing
Authentication	Email + SMS code or KBA as required
Required Fields	Make parties, dates, and payment terms mandatory
Retention	Enable tamper-evident storage with audit trail

Technical Considerations for eSubmission and Signing

Ensure selected tools meet industry compliance such as ESIGN, UETA, and any sector-specific certifications before eSubmission.

File Formats: PDF, DOCX supported
Integrations: Salesforce, NetSuite, Google Workspace
Access Controls: Role-based permissions

Common Timelines and Deadlines to Include on the Checklist

Document and track key dates on the checklist so parties know when deliverables, approvals, and closings must occur.

Effective Date:

The date obligations begin; enter MM/DD/YYYY

Signatures Due:

Specify a signing window, e.g., 7–14 days from final draft

Due Diligence Period:

Set a fixed review period, commonly 30 days

Closing Date:

Date when performance or transfer occurs

Record Start:

Retention clock begins on execution date

Key Milestones from Term Sheet to Execution

Track milestone stages as numbered steps to maintain visibility across stakeholder teams.

01

Drafting

Convert checklist items into a full draft contract for review.

02

Internal Review

Legal and finance validate terms and risk allocation.

03

Counterparty Review

Exchange redlines and negotiate unresolved points.

04

Execution

Sign and archive the final contract with the checklist attached.

Common Mistakes to Avoid When Preparing the Checklist

Failing to record the exact legal entity or TIN, causing payment and tax processing delays and validation errors.
Leaving payment mechanics vague, such as unspecified currency or invoicing cadence, which leads to disputes down the line.
Omitting authentication requirements for signatures or notary steps, resulting in rejected or unenforceable execution.
Not confirming industry-specific requirements (HIPAA clauses, lien waivers, export controls) which can create compliance gaps.

Principal Risks from an Incomplete or Incorrect Checklist

Enforceability Risk: Missing signatures may invalidate obligations

Tax Exposure: Incorrect payee TIN triggers withholding or penalties

Compliance Violation: PHI mishandling can breach HIPAA

Operational Delay: Unclear milestones delay project start

Financial Loss: Ambiguous payment terms increase collections risk

Reputational Harm: Contract disputes can damage relationships

Real-World Examples of Checklist Use

These short case arcs show how organizations use term sheet checklists to streamline contracting and reduce execution risk.

Martin Properties — Tim Martin

A small real estate firm used a standardized checklist to capture tenant obligations and payment schedules during negotiations.

The checklist shortened internal review cycles by consolidating required exhibits.
As a result, Martin Properties reported faster handoffs between brokers and legal and fewer redlines during final drafting, enabling them to close more leases with consistent terms and fewer post-signature disputes.

Xerox — Kodi-Marie Evans

An enterprise operations team embedded a checklist into NetSuite workflows to centralize procurement approvals.

The checklist enforced insurance and IP clauses.
This reduced procurement cycle time and ensured contract managers had the exact invoice and compliance details needed for vendor activation.

eSignature Pricing and Capability Snapshot for Contract Signing

A concise vendor comparison highlighting starting price and key capabilities relevant when executing a Contract Term Sheet Checklist electronically.

	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	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No envelope cap	100 envelopes/user/year	Varies	Varies	Varies

Frequently Asked Questions and Troubleshooting

Answers to common questions about completing, signing, and preserving a Contract Term Sheet Checklist in the United States.

Need help? Contact support

Can a checklist be signed electronically?
Yes. Electronic signatures are enforceable under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted. Ensure intent, consent, attribution, and record retention are documented to meet the four-part legal validity test.
Is a notary required for a term sheet?
Usually not. Most term sheets do not require notarization unless they create an interest in real property or require state-specific acknowledgement. Verify with counsel for jurisdictional exceptions.
What if parties' legal names differ?
Correct the legal entity name on the checklist to match tax and incorporation records. Mismatched names can impede payment, tax reporting, and enforcement.
How long should we keep the checklist?
Retain checklists for at least the contract term plus a minimum of 3 years; follow industry rules such as HIPAA's six-year retention for health records (45 CFR §164.530(j)).
What authentication is adequate for signing?
Email-based links may suffice for many commercial deals. Higher-risk transactions benefit from multi-factor authentication, knowledge-based authentication, or notarized signatures for additional assurance.
Can we update a checklist after signing?
Yes, but treat post-signature changes as amendments. Record modifications in writing and obtain signatures from authorized signers to avoid disputes over altered terms.

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