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Conjunctional Agreement

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CONJUNCTIONAL AGREEMENT

This Conjunctional Agreement (the "Agreement") is made and entered into as of Effective Date: by and between Party A: and Party B: .

RECITALS

WHEREAS, Party A possesses certain capabilities, resources, or expertise and desires to collaborate with Party B to undertake the activities described in this Agreement; and

WHEREAS, Party B desires to engage Party A to perform the services and provide the deliverables set forth in this Agreement on the terms and conditions contained herein; and

WHEREAS, the parties intend by this Agreement to set forth the scope, responsibilities, payment, confidentiality, and other terms necessary to govern their joint activities.

SCOPE OF WORK

PAYMENT TERMS

Total Compensation: payable in accordance with the schedule below.

Method of Payment:

Late Payment: A late fee of per month (or the maximum lawful rate) will accrue on any unpaid amount commencing after the due date. Parties agree to reimburse reasonable collection costs and attorney fees incurred in enforcing payment obligations.

TERM AND TERMINATION

Term Commencement Date: . Initial Term End Date: .

Either party may terminate this Agreement for convenience upon prior written notice to the other party. Termination for cause may be effected immediately upon written notice in the event of material breach that remains uncured for a period of thirty (30) days following written notice of such breach.

CONFIDENTIALITY

Each party acknowledges that during performance of this Agreement it may receive Confidential Information of the other party. "Confidential Information" means non-public information disclosed in any form that is designated as confidential or that reasonably should be understood to be confidential. Each party shall: (a) use the Confidential Information solely to perform its obligations under this Agreement; (b) restrict disclosure to employees, contractors, or agents who need the information and who are bound by confidentiality obligations no less protective than those herein; and (c) take reasonable measures to prevent unauthorized disclosure. Confidentiality obligations survive termination for a period of three (3) years, except for trade secrets which shall remain protected for as long as permitted by applicable law.

Acknowledgement: The undersigned parties acknowledge and agree to the confidentiality obligations set forth above.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of laws principles. The parties submit to the exclusive jurisdiction of the courts located in that State for disputes arising under this Agreement.

ENTIRE AGREEMENT

This Agreement, including any exhibits, schedules, or attachments incorporated herein, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous discussions, proposals, and agreements. Any amendment or modification must be in writing and signed by authorized representatives of both parties.

NOTICES

MISCELLANEOUS

Assignment: Neither party may assign or delegate rights or obligations under this Agreement without the prior written consent of the other party, except that a party may assign to an affiliate or in connection with a merger or sale of substantially all its assets.

Indemnification: Each party shall defend, indemnify and hold harmless the other party from and against any third-party claims arising out of the indemnifying party's gross negligence or willful misconduct in performance of this Agreement.

Party A - Printed Name:

By:

Date:

Party B - Printed Name:

By:

Date:

Enter text✕

What a Conjunctional Agreement Is and When It Applies

A Conjunctional Agreement is a written contract that defines joint rights, obligations, and coordination mechanisms between two or more parties working together on a shared project or transaction. It clarifies responsibilities, timelines, resource sharing, and dispute resolution so parties avoid ambiguity about who performs which tasks. In the United States such agreements are enforceable when they meet basic contract elements (offer, acceptance, consideration) and can be executed electronically in interstate transactions under the ESIGN Act and applicable state UETA or ESRA frameworks.

Why use a Conjunctional Agreement

A clear Conjunctional Agreement reduces disputes, assigns liability, and improves project coordination by documenting roles, deliverables, and timelines. It supports compliance, auditability, and predictable handoffs when multiple parties or vendors are involved.

Why use a Conjunctional Agreement

Who typically prepares or signs this agreement

Common signers include contracting parties, joint-venture partners, prime contractors, subcontractors, and project managers who need to coordinate shared obligations.

  • General Contractors coordinating scope, payments, and scheduling with subcontractors.
  • Project Owners or Sponsors setting performance milestones and acceptance criteria.
  • Service Providers or vendors agreeing on joint deliverables and liability allocation.

Tailor signatory roles to the transaction: list authorized signers, escalation contacts, and any third-party approvers to avoid future authority disputes.

Step-by-step: Completing a Conjunctional Agreement

Follow these sequential actions to prepare, review, and finalize the agreement in a compliant, auditable way.

  • 01
    Draft: Describe parties, scope, deliverables, and compensation clearly.
  • 02
    Review: Have legal and operational teams confirm obligations and risk allocation.
  • 03
    Approve: Collect internal authorization from authorized signers or officers.
  • 04
    Execute: Sign by all parties; notarize or witness if required.

Core components to include in a professional Conjunctional Agreement

A robust agreement balances operational details with legal protections; include these six sections to cover common risks and expectations.

Parties

Clear identification of each party and legal status, including addresses and contact information for notices and invoicing.

Scope

Detailed scope of work with milestones, deliverables, acceptance criteria, and timelines to align performance expectations.

Compensation

Payment structure, billing milestones, retention terms, and dispute resolution for invoices and withholding obligations.

Liability

Indemnity, limitation of liability, insurance requirements, and allocation of risk for third-party claims.

Termination

Events permitting termination, cure periods, and post-termination obligations including transition assistance and final accounting.

Dispute Resolution

Forum selection, governing law, mediation or arbitration clauses, and remedies for breach to limit litigation exposure.

Compliance and security considerations to document

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Authentication: Two-factor and advanced signer verification
Audit Trail: Timestamped logs, IP, actions recorded
Certifications: SOC 2 Type II; ISO 27001
Regulatory Support: ESIGN, UETA, 21 CFR Part 11
Healthcare: HIPAA support with BAA available

Key risks and potential penalties of a flawed agreement

Unenforceable Terms: Ambiguous duties may be voided
Tax Penalties: Incorrect reporting can trigger IRC §6721 fines
I-9 Violations: Paperwork errors may incur DHS fines
HIPAA Breach: Unauthorized disclosures invite civil penalties
Contractual Loss: Poorly drafted liability clauses increase exposure
Delay Costs: Missing milestones may trigger liquidated damages

Common mistakes to avoid when preparing the agreement

  • Using vague scope language that leaves performance interpretation open to dispute and litigation risk.
  • Failing to identify authorized signers or corporate approval steps, which can make signatures invalid.
  • Neglecting to specify governing law and dispute resolution, increasing the cost and complexity of resolving conflicts.
  • Omitting data protection or HIPAA clauses when handling protected health information, exposing parties to regulatory risk.

How electronic execution and routing typically work

Digital workflows streamline execution: prepare fields, assign signers, authenticate, and capture a complete audit trail.

  • Upload: Load the agreement PDF or DOCX into the e-sign platform.
  • Place Fields: Add signature, date, and conditional fields where needed.
  • Authenticate: Choose email, SMS, or stronger authentication methods.
  • Record: Platform stores signed file and certificate of completion.

Configuring a digital workflow for this agreement

Set these core workflow settings to reduce friction and ensure an auditable signing process.

Field Configuration
Authentication Email link, SMS code, or KBA per sensitivity
Routing Order Sequential or parallel signer order selection
Reminders Automated email reminders and expiry settings
Storage Secure cloud retention and download options

Digital signing platforms and format compatibility

Ensure chosen software supports required formats, authentication, and integrations before starting the workflow.

  • File Types: PDF, DOCX, and HTML supported
  • Integrations: Salesforce, NetSuite, Google Workspace available
  • Access: Mobile and desktop signing supported

Confirm the provider supports HIPAA, ESIGN/UETA compliance, and the export of a verifiable audit trail for recordkeeping.

Typical timelines and processing expectations

Use these common milestones to set expectations for execution, notarization, recording, and distribution after agreement finalization.

Draft Completion:

Allow 3–10 business days for initial drafting and internal review

Legal Review:

Expect 2–5 business days for attorney comments and redlines

Signing Window:

Target 7–14 days for all parties to execute electronically

Notarization/Recording:

Plan 1–10 business days depending on RON or county recording

Final Distribution:

Provide executed copies within 24–48 hours of last signature

eSignature vendor pricing and capability snapshot

Compare starting price and basic capability indicators across common eSignature providers; signNow appears first to anchor the 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 Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes Yes Yes Yes Varies
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 Conjunctional Agreements

Answers to common execution, validity, and electronic signing questions for U.S. users.


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