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Legal Technology Agreement

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LEGAL TECHNOLOGY AGREEMENT

This Legal Technology Agreement (the "Agreement") is entered into as of Effective Date: by and between Client Name: with principal place of business at ("Client"), and Provider Name: with principal place of business at ("Provider").

RECITALS

WHEREAS, Provider develops, licenses, maintains and supports software, platforms and related services designed for legal practice management, document automation, and related workflows (collectively, the "Technology"); and

WHEREAS, Client desires to obtain from Provider, and Provider desires to provide to Client, a license to access and use the Technology and related professional services subject to the terms and conditions of this Agreement; and

WHEREAS, the parties intend for Provider to perform implementation, customization, and support services in accordance with the scope and fees set forth herein.

NOW, THEREFORE

In consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows:

1. DEFINITIONS

For purposes of this Agreement: (a) "Documentation" means Provider's user manuals, technical manuals and other materials describing the functions, features and operation of the Technology; (b) "Confidential Information" means nonpublic business, technical and financial information disclosed by a party that is identified as confidential or that reasonably should be understood to be confidential; and (c) "Deliverables" means work product delivered to Client pursuant to the Services.

2. LICENSE GRANT

Subject to the terms and conditions of this Agreement and payment of all Fees, Provider grants Client a non-exclusive, non-transferable, limited license during the Term to access and use the Technology and Documentation solely for Client's internal legal practice purposes and in accordance with the Documentation. All rights not expressly granted are reserved by Provider.

3. SCOPE OF SERVICES

Provider will perform the implementation, customization, training and support services described in the scope below. Any changes to the scope that materially increase fees or schedule shall be subject to a written Change Order executed by both parties.

4. FEES, INVOICING AND PAYMENT

Client shall pay Provider the fees as set forth below. Fees are exclusive of taxes. Unless otherwise agreed in writing, Provider shall invoice Client in accordance with the billing schedule. Past due amounts shall accrue interest at the lesser of 1.5% per month or the maximum rate permitted by law.

5. CONFIDENTIALITY AND DATA SECURITY

Each party shall maintain the other's Confidential Information in confidence and shall not disclose it except to employees, contractors or advisors who have a need to know and are bound by confidentiality obligations. Provider shall implement commercially reasonable administrative, physical and technical safeguards to protect Client Data from unauthorized access, disclosure, alteration or destruction.

6. INTELLECTUAL PROPERTY

Provider retains all right, title and interest in and to the Technology, Documentation and Provider's pre-existing intellectual property. Client retains all right, title and interest in and to Client Data and Client's pre-existing materials. Provider hereby grants to Client only the rights expressly set forth in this Agreement. Any Deliverables specifically agreed in writing to be assigned to Client will be owned by Client upon full payment; Provider hereby assigns to Client all right, title and interest in such Deliverables, subject to Provider's retained rights in its pre-existing tools, methodologies and general know-how.

7. WARRANTIES; DISCLAIMER

Provider warrants that it will perform the Services in a professional and workmanlike manner in accordance with generally accepted industry standards. EXCEPT FOR THE EXPRESS WARRANTY IN THIS SECTION, THE TECHNOLOGY AND SERVICES ARE PROVIDED "AS IS" AND PROVIDER DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT.

8. INDEMNIFICATION

Provider shall defend, indemnify and hold Client harmless from and against any third-party claim alleging that the Technology, as delivered and used in accordance with this Agreement, infringes a third party's issued patent, copyright or trademark, subject to Client providing prompt notice and reasonable cooperation. Client shall indemnify Provider for claims arising from Client Data or Client's misuse of the Technology.

9. LIMITATION OF LIABILITY

EXCEPT FOR A PARTY'S INDEMNIFICATION OBLIGATIONS OR A PARTY'S WILLFUL MISCONDUCT, 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 CLIENT TO PROVIDER UNDER THIS AGREEMENT DURING THE TWELVE (12) MONTHS PRECEDING THE CLAIM. NEITHER PARTY SHALL BE LIABLE FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE OR SPECIAL DAMAGES.

10. TERM AND TERMINATION

The Agreement commences on the Effective Date and continues for an initial term as set forth below, unless earlier terminated in accordance with this Section. Either party may terminate for material breach if the breaching party fails to cure within the cure period after written notice.

11. NOTICES

All notices required or permitted under this Agreement shall be in writing and delivered to the contact and address for each party set forth below or to such other address as either party designates by notice to the other in accordance with this Section.

12. AMENDMENTS; WAIVER

No amendment or modification of this Agreement shall be effective unless in writing and signed by authorized representatives of both parties. No failure or delay in exercising any right shall operate as a waiver of that right.

13. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of law principles.

14. ENTIRE AGREEMENT; SEVERABILITY

This Agreement, together with any attached exhibits and executed Change Orders, constitutes the entire agreement between the parties and supersedes all prior and contemporaneous agreements. If any provision is held invalid or unenforceable, that provision shall be reformed only to the extent necessary and the remaining provisions shall remain in full force and effect.

15. COUNTERPARTS; ASSIGNMENT

This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. Neither party may assign its rights or obligations without the prior written consent of the other, except that Provider may assign to an affiliate or in connection with a merger or sale of substantially all of its assets.

16. ADDITIONAL PROVISIONS

The parties agree to cooperate in good faith to implement the business objectives set forth herein. Any dispute arising under this Agreement shall first be subject to good faith negotiation between senior executives before resort to litigation.

Client:

By:

Date:

Provider:

By:

Date:

Enter text✕

What a Legal Technology Agreement Covers

Legal Technology Agreement defines terms under which a legal services organization acquires, licenses, or uses software, platforms, or cloud services tailored to legal workflows. It covers scope of services, permitted users, data handling, security obligations, service levels, fees, intellectual property rights, confidentiality, compliance with ESIGN/UETA where applicable, and termination. Agreements often include implementation schedules, support and maintenance, change control, and warranties or disclaimers. Clear definitions and measurable service-level metrics reduce disputes and support regulatory compliance for client and vendor obligations.

Why this Agreement Matters for Legal Teams

A Legal Technology Agreement establishes responsibilities for data security, confidentiality, and regulatory compliance while setting commercial terms and measurable service levels. It clarifies ownership of deliverables and supports enforceability of electronic records under ESIGN and UETA when signature and retention requirements are met.

Why this Agreement Matters for Legal Teams

Who Typically Prepares or Signs This Agreement

Typical signatories include procurement, general counsel, IT security, and practice group leaders responsible for vendor contracting and compliance.

  • Law firms procuring matter-management, billing, or document automation platforms and integrations.
  • Corporate legal departments licensing contract lifecycle or eDiscovery tools for legal operations.
  • Vendors and service providers offering hosted legal applications, support, or managed services.

Accurate execution by identified signers ensures contractual obligations can be enforced and aids auditability for compliance, litigation holds, and regulatory review.

Signatory Roles and Responsibilities

General Counsel

Typically negotiates commercial terms, limits liability, and reviews data protection clauses. Responsible for governing state choice, indemnities, and vendor obligations to retain records and comply with ESIGN/UETA requirements for electronic signatures when agreements use e-signature workflows.

IT Security Lead

Evaluates technical controls, encryption, access controls, and audit logging. Ensures vendor certifications (SOC 2, ISO 27001), configures secure integrations, and validates requirements for HIPAA or 21 CFR Part 11 compliance where applicable.

Essential Contract Elements to Include

Core Legal Technology Agreement elements define scope, performance metrics, security obligations, data ownership, pricing, and termination rights to reduce ambiguity between parties.

Scope of Services

Specify licensed features, user counts, integration points, deliverables, and excluded services. Include implementation milestones, acceptance testing criteria, and responsibilities for third-party components to avoid scope creep.

Service Levels

Define uptime targets, mean time to repair, incident response windows, credits for breaches, and reporting cadence. Attach measurement methods and dashboards used to calculate compliance with agreed SLAs.

Security & Privacy

Require encryption in transit and at rest, access controls, regular penetration testing, breach notification timelines, and compliance with HIPAA, GDPR, and other applicable privacy frameworks. Specify BAA if PHI is processed.

Intellectual Property

Clarify ownership of preexisting IP, work product, and deliverables. Include licenses granted, restrictions on reverse engineering, and rights to use anonymized or aggregated data for product improvement.

Termination & Remedies

Describe termination for convenience and for cause, cure periods, transition assistance, data return or deletion obligations, and liability caps. Include post-termination access for audits or retention required by law.

Pricing & Payments

Detail fees, billing cycles, invoicing requirements, payment milestones, penalties for late payment, and any pass-through costs for third-party services or support.

Security and Compliance Highlights

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Certifications: SOC 2 Type II, ISO 27001, PCI DSS
Privacy Standards: HIPAA (BAA available), GDPR, CCPA compliance
eSignature Law: ESIGN and UETA compliant
Audit Trail: Timestamps, IP, action logs retained
Accessibility: WCAG 2.0 Level AA support

Step-by-Step: Prepare and Execute the Agreement

Follow these steps to prepare, sign, and archive a Legal Technology Agreement using an eSignature-enabled workflow.

  • 01
    Prepare Document: Collect scope, definitions, exhibits, and required approvals before sending for signature.
  • 02
    Add Fields: Place signature, initials, dates, and conditional fields for obligations.
  • 03
    Specify Signers: Add signer email, role, and order; set authentication method.
  • 04
    Archive: Download executed PDF and retain audit trail in secure storage.

How to Configure an Online Signing Workflow

Configure the online workflow to match contractual milestones, authentication requirements, and document retention policies in the eSignature platform.

Field Configuration
Signer Order Sequential or parallel
Authentication Email, SMS, KBA, or SSO
Notifications Reminders and escalation
Retention Export to archive or cloud

Typical eSubmission Flow for Execution and Archival

A standard eSubmission flow routes the agreement through approval, signing, verification, and archival with audit records captured at each step.

  • Upload: Sender uploads final executed version and supporting exhibits.
  • Prepare: Add signature fields, initials, dates, and conditional sections.
  • Sign: Signers authenticate and apply signatures; audit trail records actions.
  • Archive: System stores PDF and metadata; exportable for legal holds.

Platform Capabilities to Verify Before Signing

Ensure the eSignature platform meets security, compliance, and integration requirements before executing a Legal Technology Agreement.

  • Integrations: Salesforce, NetSuite, Microsoft 365 compatibility
  • Formats: PDF, DOCX, HTML document formats supported
  • Authentication: SSO, MFA, SMS, KBA options

Key Dates and Notice Windows to Track

Key deadlines in procurement, implementation, and compliance phases for a Legal Technology Agreement help manage risk and obligations.

Effective Date:

Date when rights and obligations commence; use MM/DD/YYYY.

Implementation Milestone:

Target dates for deployment and acceptance testing tied to payment.

SLA Measurement:

Monthly or quarterly reporting dates for uptime and incident credits.

Renewal Notice:

Advance notice window for renewal or termination, typically 30–90 days.

Data Retention:

Deadlines for data return or deletion after termination per contract.

Common Mistakes to Avoid

  • Failing to define scope precisely leads to disputes over feature availability, integrations, support obligations, and unplanned fees during implementation and maintenance.
  • Overlooking data residency and processing clauses can create noncompliance with state or international privacy laws, complicating cross-border transfers and auditor inquiries.
  • Accepting vague SLA terms without measurable metrics or remedies reduces leverage to obtain credits or timely support when outages or security incidents occur.
  • Neglecting to align retention schedules and deletion procedures with HIPAA, IRS, or industry rules may produce regulatory exposure and evidence spoliation risks.

Potential Penalties and Legal Risks

Data Breach Liability: Statutory fines and remediation costs
HIPAA Penalties: Civil fines and corrective action (45 CFR §164.502)
Tax Reporting Fines: IRC §6721 penalties for late or incorrect returns
I-9 Violations: Penalties $281–$2,789 per violation (8 CFR §274a.2)
Contractual Damages: Liquidated damages or indemnity claims
Reputational Risk: Loss of client trust and market position

Pricing and Feature Comparison for eSignature Providers

Compare baseline eSignature features and pricing to evaluate costs and compliance suitability for executing Legal Technology Agreements.

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 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 cap 100 envelopes/user/year No cap No cap No cap

Illustrative Use Cases

Real-world uses show how Legal Technology Agreements streamline procurement, protect data, and specify operational responsibilities across organizations.

Optica Ventures

Optica Ventures used a legal technology platform to centralize contracts and accelerate matter intake across remote teams while maintaining consistent signatures and audit trails.

  • Signatures and workflows completed without in-person meetings.
  • The result reduced turnaround time for client onboarding and ensured records were reproducible for audits, improving compliance with internal policies and providing a clear chain of custody for electronically executed agreements.

Fertility Centers

Fertility Centers of Illinois implemented an eSignature workflow to collect patient and vendor consents securely while enabling mobile and offline signing for field staff and remote patients.

  • Mobile signing maintained compliance across devices.
  • The system preserved audit trails and time-stamped records, satisfying internal governance and creating defensible evidence during reviews. This supported regulatory compliance obligations.

Frequently Asked Questions

Answers to common questions on enforceability, notarization, e-signing standards, amendment, signatures authority, and record retention for Legal Technology Agreements.


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