Are electronic signatures legally binding?

Yes. Under the federal ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, electronic signatures are legally enforceable when there is intent, consent, attribution, and reliable record retention. Certain categories, like wills or court orders, remain exceptions and require paper.

Do I need a notary for a Monthly Contract?

Generally no; typical Monthly Contracts do not require notarization for validity. Notarization or RON may be necessary for attached documents (deeds, powers of attorney) or where state law specifically requires authenticated signatures. Check state notary statutes before executing a notarized version.

How do I update an existing Monthly Contract?

Amendments should be documented in writing and signed by all parties. Include amendment effective date, specific clause changes, and whether amendments supersede prior terms. For electronic amendments, ensure ESIGN-compliant consent and preserve the audit trail to demonstrate agreement and attribution.

Who can sign the Monthly Contract?

An authorized representative with binding authority should sign. For companies, that is typically an officer or someone with delegated signing rights. Verify signature authority in corporate resolutions or power-of-attorney documents to avoid later challenges to enforceability.

What if a party stops paying?

Refer to the contract's remedies: late fees, suspension of services, and termination clauses. Follow notice and cure provisions before termination to reduce breach risk. Preserve all communications and invoicing records for collections or potential legal action.

Are signed digital copies admissible in court?

Yes, if the e-signature and audit trail meet ESIGN and UETA criteria for intent, attribution, and record retention. Produce the full audit trail, metadata, and any consent disclosures to support admissibility; some jurisdictions accept PDF copies with embedded audit certificates.

Monthly Contract

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

MONTHLY CONTRACT

Parties

Client Name: Business Type: Individual Corporation

Client Address

Service Provider Name: Business Type: Individual LLC Corporation

Service Provider Address

Recitals

WHEREAS, Service Provider is duly engaged in the business of providing the services described below and represents that it has the experience, personnel, and resources to perform such services in a professional manner; and

WHEREAS, Client desires to retain Service Provider to perform recurring monthly services on the terms and conditions set forth in this Monthly Contract; and

WHEREAS, the parties desire to set forth the terms governing the provision of such services, payment, confidentiality, and termination.

Scope of Work

Service Provider shall perform the services described below on a monthly recurring basis, including any deliverables, performance standards, and reporting requirements. Material changes to the Scope of Work shall require a written amendment signed by both parties.

Describe Scope of Work

Payment Terms

Client shall pay Service Provider a recurring monthly fee in exchange for the services provided. Payments are due in accordance with the schedule below and subject to the late fee provisions set forth herein.

Monthly Fee (USD)

Payment Due Each Month: Day of the month. Payments to be made by: .

Late Payment Fee

If payment is not received within days after the due date, Client shall be charged the late payment fee specified above. Service Provider may suspend services if invoices remain unpaid after thirty (30) days following written notice of nonpayment.

Term and Termination

This Agreement commences on the Start Date and continues on a month-to-month basis until the End Date or until terminated as provided below.

Start Date: End Date:

Either party may terminate this Agreement for convenience upon providing days' prior written notice to the other party. Either party may terminate immediately for material breach that remains uncured for fifteen (15) days after receipt of written notice specifying the breach.

Confidentiality

Definition: "Confidential Information" means non-public information disclosed by one party to the other, whether in writing, orally, or by inspection, that is designated as confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure.

Obligations: Receiving party shall (a) hold Confidential Information in strict confidence, (b) use it only for performance under this Agreement, and (c) disclose it only to employees, contractors, or advisors with a need to know who are bound by confidentiality obligations no less protective than those herein.

Exclusions: Confidential Information does not include information that (i) is or becomes publicly known through no breach of this Agreement, (ii) is rightfully received from a third party without restriction, (iii) is independently developed without use of Confidential Information, or (iv) is required to be disclosed by law, provided the receiving party gives prompt notice to the disclosing party and cooperates in any protective action.

Duration: The confidentiality obligations shall survive termination of this Agreement for a period of two (2) years, except with respect to trade secrets, for which protection shall continue for so long as such information remains a trade secret under applicable law.

Liability and Indemnification

Each party's liability for direct damages arising under or related to this Agreement shall be limited to the total amount of fees paid by Client to Service Provider under this Agreement in the three (3) months preceding the claim. Neither party shall be liable for consequential, incidental, punitive, or special damages. Service Provider shall indemnify Client against third-party claims arising from Service Provider's gross negligence or willful misconduct.

Governing Law

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

Entire Agreement and Amendments

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

Miscellaneous

Independent Contractors: The parties are independent contractors. Nothing in this Agreement creates a partnership, joint venture, employment relationship, or agency between the parties. Notices: All notices required or permitted shall be in writing and delivered to the addresses provided above.

Severability: If any provision is held unenforceable, the remainder of the Agreement shall remain in full force and effect.

Client Printed Name:

By:

Date:

Service Provider Printed Name:

By:

Date:

What a Monthly Contract Is and When It Applies

A Monthly Contract is a written agreement that sets recurring monthly terms between two parties for services, subscriptions, or rentals. It defines scope of services, payment amount and schedule, invoicing, renewal and termination terms, notice procedures, and responsibilities for both parties. Monthly Contracts are commonly executed electronically; when signed online they must meet ESIGN and UETA requirements for intent, consent, attribution, and retention. Parties often include billing details, effective date, governing law, and signature blocks to ensure enforceability across state jurisdictions.

Why a Monthly Contract Matters for Ongoing Work

A Monthly Contract clarifies recurring obligations, secures predictable cash flow, and reduces billing disputes by documenting payment, renewal, and termination terms. Executed correctly it is legally enforceable under ESIGN (15 U.S.C. ch. 96) and UETA, including when signed electronically via compliant platforms.

Who Commonly Uses Monthly Contracts

Small businesses, property managers, SaaS providers, and professional services firms commonly use Monthly Contracts to standardize recurring billing and service terms.

Small businesses and freelancers managing recurring client retainers and monthly invoices.
Property managers and landlords for monthly rent, utilities, and maintenance billing.
SaaS and subscription providers for auto-renewals, trial periods, and cancellation rules.

Corporations and government contractors also use Monthly Contracts where recurring deliverables, compliance, and audit trails are required for procurement and billing.

Core Sections to Include in a Professional Monthly Contract

Essential sections of a Monthly Contract define term, payment schedule, scope, renewal, termination, liabilities, and dispute resolution to reduce ambiguity.

Term

Specify effective date, initial term length, automatic renewal terms, and required notice period for nonrenewal; clarify whether month-to-month or fixed-term to prevent unintended extensions.

Payment

State monthly fee, due date, late fee schedule, accepted payment methods, invoicing interval, and consequences for nonpayment including suspension or collections. Include tax responsibility and expense reimbursements.

Scope

Describe services or goods provided each month, deliverables, service levels, and excluded items. Attach a SOW or schedule as an exhibit to avoid disputes about expectations.

Termination

Define termination for convenience and for cause, notice periods, cure rights, payment obligations on termination, and any early-termination fees or wind-down responsibilities, including administrative steps.

Liability

Limitations of liability, indemnification obligations, and insurance requirements. Specify caps on damages, excluded consequential damages, and responsibility for third-party claims related to monthly services.

Disputes

Specify governing law, venue, dispute resolution method (mediation, arbitration, or court), and any notice or escalation procedures to resolve billing or performance disagreements quickly.

Required Information and Key Fields to Complete

Full legal name: As on government ID

Effective date: Enter as MM/DD/YYYY format

Party addresses: Street, city, state, ZIP

Payment amount: Monthly fee and currency

Billing cycle: Due date and grace period

Signature: Typed or drawn with date

Step-by-Step: Preparing and Executing a Monthly Contract

Follow these sequential steps to prepare, sign, and store a Monthly Contract correctly electronically when applicable.

01

Prepare: Assemble party details, scope, pricing, and exhibits.
02

Review: Confirm terms, renewal, and termination provisions with counsel.
03

Sign: Obtain signatures and dates from authorized signatories.
04

Store: Save executed copy with audit trail and backups.

Configuring an Online Monthly Contract Workflow

Configure an online Monthly Contract workflow to automate routing, reminders, and signature collection with appropriate authentication levels.

Field	Configuration
Signing Order	Parallel or sequential routing by role
Authentication	Email, SMS code, or KBA options
Reminders	Automatic email reminders before due dates
Templates	Reusable template with embedded fields and variables
Audit Trail	Record timestamps, IP, and actions

Typical Flow for Sending and Submitting the Contract

Typical end-to-end flow for sending, signing, and distributing a Monthly Contract including storage and customer delivery.

Upload: Attach the contract PDF or DOCX to the platform
Assign: Add signer emails and set signing order
Authenticate: Choose SMS, email link, or KBA verification
Distribute: Send copies to all parties and store executed file

Platform and Integration Considerations

Choose a platform that supports PDF/DOCX, audit trails, and integrations with accounting or CRM systems to manage Monthly Contracts centrally.

Formats: PDF and DOCX supported
Integrations: CRM, accounting, and storage
Security: AES-256 at rest and TLS in transit

Key Dates and Timing to Include

Key dates and standard timing to include in a Monthly Contract help avoid disputes and ensure timely billing and compliance.

Payment Due Date:

Specify day of month or days after invoice

Late Fee Trigger:

State grace period and late fee calculation method

Renewal Notice:

Notice required for nonrenewal, often 30 days

Termination Notice:

Advance notice for termination for convenience

Record Retention:

Specify where executed copies are stored and retention period

Common Preparation Mistakes to Avoid

Using vague renewal language such as 'auto-renew unless terminated' without specifying notice period leads to disputes and unintended continuations.
Failing to identify authorized signers or their capacity can render the contract voidable, causing enforcement and payment collection issues.
Omitting a clear payment method and late fee schedule often results in delayed payments and inconsistent bookkeeping across accounting systems.
Not aligning governing law and jurisdiction with the service location increases litigation risk and may complicate remedies across states.

Penalties and Short-Term Risks of Incorrect Contracts

Late Payment: Interest, collections, service suspension

Backup Withholding: 24% if missing or incorrect TIN

Tax Reporting: Incorrect 1099 leads to IRS penalties

I-9 Violations: Paperwork fines $281–$2,789

Breach Liability: Damages and indemnity exposure

Termination Costs: Early termination fees possible

Real-World Examples of Monthly Contracts in Use

Real-world examples of Monthly Contracts across organizations illustrate common structures, compliance trade-offs, and signature workflows used by teams.

Optica Ventures

Optica Ventures used a Monthly Contract to standardize subscription deliverables and billing across multiple clients, reducing administrative overhead and follow-up.

They emphasized simplicity and customer ease.
As COO Brian Fitzgibbons noted, a clear contract and streamlined signing process improved turnaround and customer satisfaction while preserving audit trails for financial reconciliation and reporting across engagements.

Martin Properties

Martin Properties implemented Monthly Contracts for property management services to ensure rent collection, maintenance scheduling, and tenant communication were uniform and auditable.

Mobile signing reduced time on site.
Founder Tim Martin reported fully executed digital contracts sped up processing, enabled remote authorizations, and created consistent records for accounting and compliance, reducing in-person meetings without compromising legal enforceability or audit readiness.

Typical eSignature Pricing and Feature Comparison for Monthly Contracts

Compare common eSignature plan features and starting prices for typical Monthly Contract workflows; signNow is listed first for vendor parity.

	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	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Frequently Asked Questions About Monthly Contracts

Answers to common questions about signing, modifying, and enforcing Monthly Contracts, including digital signature validity and notarization considerations.

Need help? Contact support

Are electronic signatures legally binding?
Yes. Under the federal ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, electronic signatures are legally enforceable when there is intent, consent, attribution, and reliable record retention. Certain categories, like wills or court orders, remain exceptions and require paper.
Do I need a notary for a Monthly Contract?
Generally no; typical Monthly Contracts do not require notarization for validity. Notarization or RON may be necessary for attached documents (deeds, powers of attorney) or where state law specifically requires authenticated signatures. Check state notary statutes before executing a notarized version.
How do I update an existing Monthly Contract?
Amendments should be documented in writing and signed by all parties. Include amendment effective date, specific clause changes, and whether amendments supersede prior terms. For electronic amendments, ensure ESIGN-compliant consent and preserve the audit trail to demonstrate agreement and attribution.
Who can sign the Monthly Contract?
An authorized representative with binding authority should sign. For companies, that is typically an officer or someone with delegated signing rights. Verify signature authority in corporate resolutions or power-of-attorney documents to avoid later challenges to enforceability.
What if a party stops paying?
Refer to the contract's remedies: late fees, suspension of services, and termination clauses. Follow notice and cure provisions before termination to reduce breach risk. Preserve all communications and invoicing records for collections or potential legal action.
Are signed digital copies admissible in court?
Yes, if the e-signature and audit trail meet ESIGN and UETA criteria for intent, attribution, and record retention. Produce the full audit trail, metadata, and any consent disclosures to support admissibility; some jurisdictions accept PDF copies with embedded audit certificates.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now