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Legal Core Agreement

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LEGAL CORE AGREEMENT

This Legal Core Agreement ("Agreement") is entered into as of by and between with principal place of business at (hereinafter "Party A"), and with principal place of business at (hereinafter "Party B"). Party A and Party B are each a "Party" and collectively the "Parties."

RECITALS

WHEREAS, Party A possesses expertise, resources, or technologies relevant to the provision of services described herein; and

WHEREAS, Party B desires to engage Party A to provide such services under the terms and conditions set forth in this Agreement; and

WHEREAS, the Parties intend by this Agreement to set forth the core commercial and legal terms governing their relationship and to allocate risk, ownership, payment and confidentiality obligations between them.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. DEFINITIONS

1.1 "Confidential Information" means all non-public, proprietary or confidential information disclosed by a Party to the other Party, whether disclosed orally, visually, in writing or by inspection of tangible items, including but not limited to trade secrets, technical data, business and marketing plans, and customer information, that is designated as confidential or that a reasonable person would understand to be confidential under the circumstances.

1.2 "Services" means the services, deliverables and specifications described in Exhibit A attached hereto and incorporated herein by reference. To the extent no Exhibit A is attached, Services shall be described in the Service Description field below.

2. SCOPE OF SERVICES; PERFORMANCE

2.1 Party A shall perform the Services in a professional and workmanlike manner in accordance with industry standards. Party A will use commercially reasonable efforts to meet any delivery dates set forth in the Service Description but shall not be liable for delays due to causes beyond its reasonable control.

2.2 Changes to the Services shall require written agreement of the Parties. If a change materially increases Party A's cost or time to perform, the Parties shall negotiate in good faith an equitable adjustment to fees and schedule.

3. TERM AND TERMINATION

3.1 Term. This Agreement commences on the Effective Date and shall continue for months unless earlier terminated in accordance with this Section.

3.2 Termination for Convenience. Either Party may terminate this Agreement for convenience upon days' prior written notice to the other Party.

3.3 Termination for Cause. Either Party may terminate immediately upon written notice if the other Party materially breaches this Agreement and fails to cure such breach within days after receipt of written notice specifying the breach.

4. FEES; PAYMENT

4.1 Fees. In consideration for the Services, Party B shall pay Party A the fees set forth in the payment schedule below or as otherwise agreed in writing.

5. CONFIDENTIALITY

5.1 Each Party shall hold Confidential Information of the other Party in strict confidence and shall not disclose such information to any third party except as expressly permitted herein. The receiving Party shall use at least the same degree of care to protect the disclosing Party's Confidential Information as it uses to protect its own confidential information, but no less than reasonable care.

5.2 Exceptions. Confidential Information does not include information that (a) is or becomes generally available to the public other than by breach of this Agreement; (b) was rightfully in the receiving Party's possession prior to receipt from the disclosing Party; (c) is rightfully received by the receiving Party from a third party without restriction; or (d) is independently developed by the receiving Party without use of or reference to the disclosing Party's Confidential Information.

6. INTELLECTUAL PROPERTY

6.1 Ownership. Except as expressly set forth herein, each Party retains all right, title and interest in and to its pre-existing intellectual property. Unless otherwise agreed in writing, deliverables specifically created for Party B under this Agreement shall be deemed "Work Product" and ownership shall vest as follows:

6.2 License. To the extent any pre-existing intellectual property of a Party is incorporated into deliverables, that Party grants the other Party a nonexclusive, nontransferable, royalty-free license to use such pre-existing intellectual property solely for the benefit and use of the deliverables as contemplated by this Agreement.

7. REPRESENTATIONS AND WARRANTIES

7.1 Each Party represents and warrants that it has the full power and authority to enter into this Agreement and to perform its obligations hereunder and that its execution and performance will not violate any agreement to which it is a party.

7.2 EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, NEITHER PARTY MAKES ANY OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

8. INDEMNIFICATION

8.1 Each Party (the "Indemnitor") shall indemnify, defend and hold harmless the other Party (the "Indemnitee") from and against any and all losses, damages, liabilities, costs and expenses (including reasonable attorneys' fees) arising out of or resulting from: (a) breach of the indemnitor's representations, warranties or covenants; or (b) third-party claims arising from the indemnitor's negligence or willful misconduct in performing under this Agreement.

9. LIMITATION OF LIABILITY

9.1 EXCEPT FOR A PARTY'S INDEMNIFICATION OBLIGATIONS, BREACH OF CONFIDENTIALITY, OR LIABILITY ARISING FROM WILLFUL MISCONDUCT OR GROSS NEGLIGENCE, IN NO EVENT SHALL EITHER PARTY'S AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT EXCEED THE TOTAL AMOUNTS PAID OR PAYABLE BY PARTY B TO PARTY A DURING THE TWELVE (12) MONTHS PRECEDING THE EVENT GIVING RISE TO THE CLAIM.

10. INSURANCE

10.1 Each Party shall maintain insurance coverage reasonably appropriate to its business and the risks associated with the Services, including, where applicable, commercial general liability and professional liability insurance in commercially reasonable amounts.

11. NOTICES

11.1 All notices required or permitted under this Agreement shall be in writing and shall be delivered to the addresses set forth below or to such other address as a Party may specify by notice to the other Party. Notices shall be deemed given when delivered personally, sent by nationally recognized overnight courier, or three business days after being deposited in the U.S. mail, postage prepaid, certified mail, return receipt requested.

12. AMENDMENTS; WAIVER

12.1 This Agreement may be amended only by a written instrument executed by authorized representatives of both Parties. No waiver of any right under this Agreement shall be effective unless in writing and signed by the Party granting the waiver, and a single waiver shall not constitute a continuing waiver.

13. GOVERNING LAW; JURISDICTION

13.1 This Agreement shall be governed by and construed in accordance with the laws of the state of without regard to its conflict of laws principles. Each Party irrevocably submits to the exclusive jurisdiction of the state and federal courts located in the county of for purposes of any action arising out of or relating to this Agreement.

14. ENTIRE AGREEMENT

14.1 This Agreement, together with any exhibits and attachments expressly incorporated herein, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, proposals, negotiations, representations and understandings, whether written or oral.

15. SEVERABILITY

15.1 If any provision of this Agreement is held to be invalid, illegal or unenforceable, the remaining provisions shall continue in full force and effect and the Parties shall negotiate in good faith a substitute, valid and enforceable provision that most nearly effects the Parties' intent in entering into this Agreement.

16. COUNTERPARTS; ELECTRONIC SIGNATURES

16.1 This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Execution and delivery of this Agreement by electronic means (including by scanned signature or electronic signature platform) shall be effective to bind the Parties.

MISCELLANEOUS

Party A Printed Name:

By:

Date:

Party B Printed Name:

By:

Date:

Enter text✕

What the Legal Core Agreement Is and when it’s used

A Legal Core Agreement is a concise, enforceable contract that sets out the primary rights and obligations between parties for a defined relationship or transaction. It typically includes parties, recitals, scope of services or deliverables, payment or consideration, term and termination, confidentiality, and signature blocks. The document is designed to reduce ambiguity, allocate risk, and provide a clear reference for performance and dispute resolution. In interstate transactions electronic execution is generally valid under the ESIGN Act (15 U.S.C. §7001) and state UETA laws, subject to statutory exceptions.

Why a clear Legal Core Agreement matters

A focused core agreement clarifies expectations, reduces negotiation time, and provides a defensible record for enforcement or regulatory review. Properly executed agreements limit ambiguity, support compliance with recordkeeping laws, and make later amendments and audits simpler.

Why a clear Legal Core Agreement matters

Typical users and stakeholders

The Legal Core Agreement is used across teams that manage contracts, compliance, and operational relationships.

  • Contract managers and procurement teams who standardize terms for repeat engagements and vendor relationships.
  • In-house legal counsel and outside counsel reviewing enforceability, indemnities, and governing law provisions.
  • Finance, HR, or program managers who require dependable payment, deliverable, or service-level terms for operations.

Multiple internal stakeholders often review the agreement before execution; clear roles speed review cycles and reduce rework.

Who typically prepares and signs

Contract Manager

A contract manager prepares and tracks the Legal Core Agreement for standard vendor or client relationships, coordinates internal reviews, and enforces renewal and termination provisions. They ensure the document aligns with procurement policy and that signatures are collected from authorized signatories.

Authorized Signatory

An authorized signatory is an officer or delegated representative with authority to bind the organization. Verify board or delegation limits before execution to avoid later disputes about authority and enforceability.

Security, compliance, and authentication standards to consider

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Audit Trail: Timestamps, IP, and action history
Access Controls: Role-based permissions and SSO
Regulatory Certifications: SOC 2 Type II, ISO 27001 listed
Privacy / HIPAA: HIPAA available with BAA when required
eSign Legal Basis: ESIGN / UETA compliance supported

Key legal risks and penalties to avoid

Tax Reporting: 1099 penalties (IRC §6721)
I-9 Noncompliance: Form errors trigger DHS fines
HIPAA Breach: Civil penalties and corrective action
Invalid Signature: Enforceability risk if requirements unmet
Notary Defects: Improper notarization can delay filings
Statute Issues: Wrong effective date may affect limitations

Common preparation mistakes to avoid

  • Using informal or inconsistent party names that do not match legal entities, which can create ambiguity in enforcement and tax reporting.
  • Failing to set or confirm the effective date and execution deadline, which affects performance obligations and limitation periods.
  • Leaving key exhibits unsigned or referenced only by filename, creating uncertainty about incorporated terms and attachments.
  • Assuming witness or notarization rules are uniform across states; improper authentication can invalidate certain filings or transfers.

How to complete the Legal Core Agreement, step by step

Follow a clear sequence to reduce errors and satisfy legal formality requirements before signature.

  • 01
    Identify Parties: Enter full legal names and entity types
  • 02
    Set Dates: Choose effective and execution deadlines
  • 03
    Define Scope: Describe services, deliverables, and limits
  • 04
    Sign and Verify: Collect authorized signatures and store records

Online workflow settings to configure before sending

Configure these workflow options to control authentication, routing, and retention when using an eSignature platform.

Field Configuration
Signing Order Sequential or parallel routing
Authentication Email link, SMS code, or KBA
Reminders Auto-reminder interval and limit
Retention Automatic archival policy

Delivery and technical considerations for e-submission

Choose delivery channels and integrations that match your security and records policies.

  • Supported Formats: PDF, Word DOCX, and HTML
  • Integrations: Salesforce, NetSuite, Google Workspace, Microsoft 365
  • Authentication Options: Email, SMS, KBA, SSO

Align platform settings with retention, authentication, and audit requirements before sending to ensure compliance and an auditable record.

Where to send or file the completed agreement

After execution, route copies to parties and required custodians to meet operational and legal obligations.

  • Primary Counterparty: Send fully executed copy to each contracting party
  • Legal Department: Retain in legal contract repository
  • Finance / Accounts: Provide invoice and payment schedule to finance
  • Regulatory or Recorder: File with county or regulator if required

Essential components every Legal Core Agreement should include

A well-drafted core agreement balances clarity, enforceability, and operational detail while minimizing unnecessary complexity.

Parties & Recitals

Identify parties using exact legal names and include brief recitals that explain the transaction context and intent without creating extraneous obligations.

Definitions

Define key terms used throughout the agreement to avoid ambiguity about deliverables, acceptance criteria, or timeline references.

Scope of Work

Set clear deliverables, milestones, and performance standards tied to measurable acceptance or inspection procedures where appropriate.

Payment and Consideration

Describe amounts, billing cadence, payment method, late fees, and invoicing requirements to minimize disputes and tax reporting issues.

Term & Termination

Specify contract term, renewal mechanics, termination rights for convenience or cause, notice periods, and post-termination obligations.

Signature & Authority

Include signature lines, printed names, titles, dates, and a statement confirming signatory authority or corporate delegation.

Key dates and expected processing times

Track these deadlines to ensure timely performance, filings, and retention obligations after execution.

Negotiation Window:

Agree on a fixed period for final edits and approvals

Execution Deadline:

Set a final date by which all signatures must be obtained

Effective Date:

Determine when contractual obligations begin

Filing Deadline:

File with recorder or regulator if required by statute

Document Retention:

Start retention clock from the effective or termination date

How a Legal Core Agreement compares with short-form NDAs

This table contrasts the Legal Core Agreement with a short-form non-disclosure agreement to clarify purpose and complexity differences.

Criteria Legal Core Agreement NDA (Short Form)
Purpose transactional terms confidentiality only
Complexity moderate to high low
Typical Use vendor/client relationships idea or data sharing
Signature Need full execution block simple sign line

eSignature vendor comparison for executing the Legal Core Agreement

Compare baseline pricing and key features for common eSignature providers. signNow is listed first per platform comparison conventions; verify plan details with each vendor when budgeting.

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 Verify Verify Verify Verify
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 Verify Verify Verify

Frequently asked questions about execution and validity

Answers to common questions about enforceability, electronic execution, notarization, and post-execution steps for the Legal Core Agreement.


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