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Legal Rights Agreement

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LEGAL RIGHTS AGREEMENT

This Legal Rights Agreement (the "Agreement") is made and entered into as of Effective Date: by and between Grantor Name: , an entity organized as Individual Corporation Limited Liability Company Partnership, with principal place of business at ; and Recipient Name: , an entity organized as Individual Corporation Limited Liability Company Partnership, with principal place of business at .

RECITALS

WHEREAS, Grantor is the sole legal and beneficial owner of certain rights described as (the "Rights");

WHEREAS, Recipient desires to obtain, and Grantor desires to grant, certain rights subject to the terms and conditions set forth herein, including within the territory of and for the field of use of ;

WHEREAS, the parties wish to set forth the terms by which such Rights shall be licensed, transferred or otherwise governed.

NOW THEREFORE, in consideration of the mutual covenants 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 "Agreement" means this Legal Rights Agreement and all schedules and exhibits attached hereto. "Effective Date" means the date set forth above. "Confidential Information" means non-public information disclosed by a party that is designated confidential or that reasonably should be understood as confidential given the nature of the information and the circumstances of disclosure.

2. Grant of Rights

2.1 Grant. Subject to the terms and conditions of this Agreement, Grantor hereby grants to Recipient the following rights with respect to the Rights: Exclusive Non-exclusive. The parties agree that the grant shall be effective in the Territory and Field of Use specified above and shall include the following rights: reproduction, distribution, public performance, display, modification, and sublicense rights as expressly checked herein: Sublicense permitted.

2.2 Limitations. Recipient shall not use the Rights beyond the scope set forth in Section 2.1. Any use not expressly granted herein is reserved to Grantor. Recipient will comply with all applicable laws in exercising the Rights.

3. Consideration

3.1 Payment. In consideration for the rights granted hereunder, Recipient shall pay Grantor the amount of payable in accordance with the payment schedule set forth below.

4. Term and Termination

4.1 Term. The term of this Agreement shall commence on the Effective Date and continue for a period of unless earlier terminated as provided herein.

4.2 Termination for Cause. Either party may terminate this Agreement upon written notice to the other if the other party materially breaches any representation, warranty or obligation under this Agreement and fails to cure such breach within days after receipt of written notice specifying the breach.

5. Representations and Warranties

5.1 Grantor represents and warrants that (a) it has the full right, power and authority to grant the Rights granted herein; (b) to the best of its knowledge no third party owns any right that would conflict with the grant herein; and (c) the exercise of the Rights by Recipient in accordance with this Agreement will not infringe the valid rights of any third party.

5.2 Recipient represents and warrants that it has full corporate or other power and authority to enter into this Agreement and to perform its obligations hereunder.

6. Confidentiality

6.1 Each party shall hold Confidential Information of the other in strict confidence and shall not disclose such information to any third party except as necessary to perform its obligations under this Agreement and subject to confidentiality obligations at least as protective as those contained herein.

7. Assignment

7.1 Neither party may assign or transfer this Agreement or any rights or obligations hereunder without the prior written consent of the other party, except that either party may assign to an affiliate or in connection with a merger, sale of substantially all assets, or similar change of control, provided the assignee assumes all obligations hereunder.

8. Indemnification

8.1 Each party (the "Indemnifying Party") shall indemnify, defend and hold harmless the other party (the "Indemnified Party") from and against any third party claims, liabilities, damages, losses and expenses (including reasonable attorneys' fees) arising out of the Indemnifying Party's breach of any representation, warranty or covenant contained herein or its negligent or willful misconduct.

9. Limitation of Liability

9.1 EXCEPT FOR A PARTY'S INDEMNIFICATION OBLIGATIONS OR A BREACH OF CONFIDENTIALITY OR INFRINGEMENT CLAIMS, IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR INCIDENTAL, CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES, AND THE AGGREGATE LIABILITY OF EITHER PARTY FOR ANY AND ALL CLAIMS ARISING OUT OF THIS AGREEMENT SHALL NOT EXCEED THE AMOUNTS PAID OR PAYABLE BY RECIPIENT TO GRANTOR UNDER THIS AGREEMENT IN THE TWELVE (12) MONTHS PRECEDING THE CLAIM.

10. Notices

Grantor Notice Address

Recipient Notice Address

11. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to choice-of-law principles that would result in the application of the laws of another jurisdiction.

12. Entire Agreement; Severability; Amendments; Waiver; Counterparts

12.1 Entire Agreement. This Agreement, together with any schedules or exhibits hereto, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, proposals and communications, whether oral or written.

12.2 Severability. If any provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement will remain in full force and effect to the fullest extent permitted by law.

12.3 Amendments and Waiver. No amendment, modification or waiver of any provision of this Agreement will be effective unless in a written instrument signed by both parties. No waiver of any breach will constitute a waiver of any other breach.

12.4 Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original and all of which together will constitute one and the same instrument. Signatures provided by electronic means or as scanned images will be binding.

13. Miscellaneous

13.1 Survival. Sections which by their nature should survive termination or expiration of this Agreement will so survive, including but not limited to Sections 5 (Representations and Warranties), 6 (Confidentiality), 8 (Indemnification), 9 (Limitation of Liability), and 11 (Governing Law).

Grantor

Party Label:

By:

Date:

Recipient

Party Label:

By:

Date:

Enter text✕

What a Legal Rights Agreement Is and when it's used

A Legal Rights Agreement is a written contract that allocates, assigns, or limits legal rights between parties. Typical uses include assigning intellectual property, granting licensing rights, transferring contractual claims, or specifying exclusive or restricted rights in commercial transactions. The document identifies parties, describes the rights transferred, states consideration, defines term and scope, and includes signature and execution blocks to create enforceable obligations under contract law and applicable electronic signature statutes.

Why a clear Legal Rights Agreement matters

A well-drafted Legal Rights Agreement reduces ambiguity about ownership and enforcement, preserves remedies, and documents consent. When executed properly it is enforceable under U.S. electronic signature laws such as the ESIGN Act (15 U.S.C. ch. 96) and state UETA statutes, subject to specific statutory exceptions.

Why a clear Legal Rights Agreement matters

Who typically prepares or signs this agreement

Select signatories and execution steps based on the type of right transferred and applicable statutory or industry requirements.

  • Real estate professionals and buyers: agents, title companies, or sellers handling property-related assignments and rights allocations.
  • Healthcare and providers: institutions or vendors when assigning rights tied to patient data or service provisions.
  • Businesses and legal teams: companies, contractors, and in-house counsel who assign IP or contract rights during transactions.

Core sections to include in a professional Legal Rights Agreement

Ensure the agreement contains clear clauses that define the transaction, identify parties, and document execution mechanics. The following components form the backbone of enforceability and operational clarity.

Parties

Full legal names and entity types for each party, including state of formation for entities, to ensure accurate identification and contract traceability.

Grant of Rights

A precise description of the rights being transferred, assigned, or licensed, including scope, territory, exclusivity, and any limitations or retained rights.

Consideration

The payment amount, royalties, other consideration, or a statement of nominal consideration where legally sufficient, with payment timing and conditions.

Term and Termination

Start and end dates, renewal conditions, termination rights for breach or convenience, and effects of termination on transferred rights.

Representations & Warranties

Statements by parties about authority, ownership, non-infringement, and absence of third-party encumbrances that could impair the transferred rights.

Execution Blocks

Signature lines, printed names, titles, dates, and notarization or witness attestations where required by applicable law or for added evidentiary weight.

Security and compliance controls to document

Encryption: AES-256 at rest; TLS 1.2/1.3 in transit
Audit Trail: Timestamped logs with IP and action history
HIPAA Support: BAA option for protected health information
Certifications: SOC 2 Type II and ISO 27001 compliance
eSignature Law: ESIGN and UETA legal alignment
Accessibility: WCAG 2.0 Level AA considerations

Step-by-step: completing a Legal Rights Agreement

Follow these core steps in order to reduce drafting errors and support enforceability when signing electronically or on paper.

  • 01
    Prepare draft: Define parties, scope, and consideration before circulation.
  • 02
    Review legal terms: Confirm ownership, encumbrances, and authority to assign.
  • 03
    Insert execution details: Add signature blocks, dates, and notarization clauses if required.
  • 04
    Execute: Sign using agreed method and retain execution evidence.

Typical digital signing flow for the agreement

A standard eSigning workflow captures intent and produces an auditable record; adjust authentication and retention to match legal risk.

  • Upload Document: Sender uploads final agreement PDF or DOCX for placement of fields.
  • Place Fields: Add signature, date, and initial fields where needed.
  • Invite Signers: Send email link or secure signing URL to each party.
  • Capture Evidence: Platform logs timestamps, IP, and actions to create an audit trail.

Recommended digital workflow settings

Configure verification and routing to match transaction complexity and regulatory needs.

Field Configuration
Authentication Email link by default; add SMS or KBA for higher assurance
Signing Order Choose sequential for dependent approvals or parallel for speed
Retention Set automatic archival and export of audit trails
Notifications Enable reminders and completion notifications for all parties

Technical considerations for eSubmission and storage

Document management systems and retention policies should align with legal hold and regulatory obligations.

  • File formats: Use PDF or DOCX for best compatibility
  • Integrations: Connect with CRM, cloud storage, or ERP systems
  • Authentication: Enable MFA or SMS for higher signer assurance

Key timing considerations and common deadlines

Track execution timing, notice periods, and related statutory deadlines to avoid unintended lapses or triggers.

Effective Date:

Controls when rights transfer; use explicit date format to avoid ambiguity.

Execution Window:

Specify any period within which all parties must sign to bind the agreement.

Notice Periods:

Include required notice windows for termination, cure, or assignment consents.

Record Retention:

Preserve executed copies consistent with regulatory retention rules.

Contractual Deadlines:

Track payment, delivery, and performance milestones tied to transferred rights.

Consequences of incomplete or incorrect agreements

Invalid Transfer: Assignment may be void or unenforceable
Litigation Exposure: Disputes over ownership or scope
Regulatory Fines: HIPAA or other compliance penalties possible
Tax Liability: Unreported transfers may trigger tax consequences
Operational Delay: Enforcement or commercialization may be delayed
Evidence Loss: Missing audit trail undermines proof of consent

Frequent drafting and signing errors to avoid

  • Ambiguous scope language that fails to specify territorially or technologically what is being assigned.
  • Mismatched party names or titles between schedule exhibits, entity formation records, and signature blocks.
  • Missing consideration or vague payment terms that lead to contract unenforceability or dispute.
  • Failure to capture execution evidence such as notarization or a robust audit trail for electronic signatures.

eSignature vendor comparison for executing Legal Rights Agreements

Compare vendor pricing and key capabilities relevant to high-assurance agreements; signNow is listed first per platform comparison rules.

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

Frequently asked questions about Legal Rights Agreements and eSigning

Answers to common questions on validity, notarization, storage, and revocation when using electronic or paper execution.


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