Parties
Full legal names and roles (originator, intermediary, beneficiary); include entity type and state of formation.
A well-drafted Legal Pass Through Agreement reduces disputes over who receives funds or performs obligations, allocates risk, and documents notice and accounting procedures. It preserves original contract intent while specifying administrative mechanics and limits exposure for intermediaries and recipients.
The agreement is useful across industries where funds, tax reporting, or contractual duties flow through an intermediary rather than directly between the original parties and final recipient.
Full legal names and roles (originator, intermediary, beneficiary); include entity type and state of formation.
Exact description of what passes through (payments, credits, notices) and timing, frequency, and conditions for transfer.
Routing instructions, invoicing requirements, tax reporting responsibilities, and any withholding obligations.
Allocation of risk, limits on intermediary liability, and procedures for claims and reimbursement.
How notices are delivered, required supporting records, and audit or reconciliation rights.
Events permitting termination, cure periods, and remedies including setoff and recovery mechanisms.
| Field | Configuration |
|---|---|
| Signer Roles | Assign originator, intermediary, beneficiary roles to signed fields for role-based routing. |
| Authentication | Choose email-only, SMS code, or stronger verification for high-risk transfers. |
| Conditional Fields | Use conditional fields to show payment details only when applicable. |
| Audit Trail | Enable full audit logging to capture timestamps, IPs, and signing events. |
Verify that the chosen platform provides an immutable audit trail, secure storage, and any industry-specific compliance (for example HIPAA) required for your use case.
| 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 (Business Premium) | Varies by plan | Varies by plan | Varies by plan | Varies by plan |
| Audit Trail | Yes | Yes | Yes | Yes | Yes |
| Envelope Cap | No cap | 100 env/user/yr limit | Depends on plan | Depends on plan | Depends on plan |
Allow 3–5 business days for legal and accounting review
Target 24–72 hours for electronic signature routing
ACH transfers typically 1–3 business days after execution
Coordinate with calendar-year filing deadlines for 1099 issuance
Retention begins on effective date or payment date as specified
Optica used a pass-through agreement to route investor distributions through a manager for administration
A real estate developer passed subcontractor retainage through a construction manager
Reviews legal effects of assignment and indemnity clauses, ensures the agreement complies with governing law, and confirms signatory authority to bind parties.
Verifies payment routing, tax reporting allocation, and accounting treatment; confirms banking information and internal controls for fund transfers.