Is an electronic statement legally enforceable?

Yes. Electronic signatures and records are legally valid under the federal ESIGN Act (15 U.S.C. §7001) and UETA where adopted; however exceptions apply for certain instruments such as wills and some court filings.

Do consumer disclosures apply?

If the statement triggers consumer-facing financial or benefit decisions, ESIGN requires a consumer disclosure and consent process before relying on electronic records.

When is notarization required?

Notarization is rarely required for a preliminary statement itself, but state law may require notarization or witnesses for underlying instruments; verify if the statement will attach to deeds or powers of attorney.

What authentication level is recommended?

Use at least email plus SMS authentication for commercial transactions; for higher-risk or regulated workflows, add identity proofing, KBA, or stronger methods.

How should I store signed copies?

Retain a tamper-evident PDF and the audit trail in a secure repository with access controls; export backups and follow retention policies aligned to IRS, HIPAA, or other applicable rules.

Can I update the statement after signing?

Yes, but any material changes should be documented in a revised statement or incorporated in the final contract; treat revisions as a new record and obtain fresh acknowledgements.

Electronic Signature
Templates
Miscellaneous
Preliminary Contract Statement

Preliminary Contract Statement

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

PRELIMINARY CONTRACT STATEMENT

Date of Statement:

Parties and Contact Information

Contracting Entity Contracting Entity Address Contractor / Vendor Contractor Address

Contact Person

Phone

Email

WHEREAS

WHEREAS, Contracting Entity: intends to procure certain goods or services described herein; and

WHEREAS, Contractor: represents that it has the capacity and qualifications to provide the described goods or services under the terms set forth in this Preliminary Contract Statement.

NOW, THEREFORE, this Preliminary Contract Statement sets forth material terms and outlines the proposed contractual arrangement to be reflected in a subsequently executed definitive contract.

Contract Summary

Contract Title Estimated Contract Value Funding Source / Budget Account

Scope of Work

The Contractor shall provide the following goods and/or services. The description below is intended to capture the essential scope for budgetary and approval purposes; the definitive contract will contain detailed deliverables, specifications, and acceptance criteria.

Payment Terms

Total Not-to-Exceed Amount:

Proposed Payment Schedule

Invoicing Requirements: Contractor shall submit itemized invoices referencing the Contract Title and purchase order or requisition number. Payment will be due within days of receipt of a proper invoice unless otherwise specified in the definitive contract.

Late Payment: Late payments shall incur interest at or the maximum lawful rate if lower. Any administrative fee for late payment: .

Term and Termination

Anticipated Contract Start Date: . Anticipated Contract End Date: .

Either party may terminate the definitive contract for convenience upon days' prior written notice. Termination for cause may be immediate where a party materially breaches and fails to cure within a commercially reasonable cure period specified in the definitive agreement.

Confidentiality

The parties anticipate exchange of Confidential Information in connection with performance. Confidential Information shall mean nonpublic information marked or otherwise identified as confidential, and information that, by its nature, a reasonable person would understand to be confidential. Receiving party shall (a) use Confidential Information solely for performance under the contract, (b) restrict disclosure to those employees or subcontractors with a need to know, and (c) protect Confidential Information with at least the same degree of care as it uses for its own confidential information, but no less than reasonable care.

Exclusions include information that is or becomes publicly available without breach, is rightfully received from a third party without restriction, or is independently developed. Confidentiality obligations will remain in effect for years following termination or expiration of the contract, unless a different period is specified in the definitive contract.

Governing Law and Dispute Resolution

This Preliminary Contract Statement and any definitive contract shall be governed by and construed in accordance with the laws of the jurisdiction of , without regard to conflicts of law principles. The parties agree to pursue good-faith negotiation of disputes and, if unsuccessful, to submit disputes to the dispute resolution process set forth in the definitive contract.

Representations; Entire Agreement

Each party represents that it has full power and authority to enter into this Preliminary Contract Statement and that the information provided herein is true and accurate to the best of its knowledge. This document constitutes a preliminary statement of material terms and does not by itself create a binding procurement contract for the provision of goods or services unless expressly stated herein. Where any provision is affirmatively stated as binding, that intent will be clearly indicated in the text.

The definitive contract, when executed by authorized representatives of both parties, shall incorporate and supersede this Preliminary Contract Statement. This Preliminary Contract Statement and the subsequent definitive contract contain the entire agreement between the parties with respect to the subject matter hereof and supersede all prior proposals, negotiations, and representations, whether written or oral, except as otherwise explicitly set forth.

Notices

Notices under any definitive contract shall be sent to the contact information provided above or to such other address as a party designates in writing.

Additional Remarks (optional)

Contracting Entity:

By:

Date:

Contractor:

By:

Date:

What the Preliminary Contract Statement Is and When It’s Used

A Preliminary Contract Statement is a concise written summary of the principal terms and conditions proposed in a contract, provided before final execution to clarify scope, price, timelines, and key contingencies. It typically identifies the parties, a short description of goods or services, an estimated price or pricing method, performance or delivery milestones, and any conditions precedent. The statement is used to set expectations, support internal approvals, enable competing bids to be compared, and form the basis for drafting the final agreement while protecting negotiation positions and documentation integrity.

Why a Preliminary Contract Statement Matters for Clear Contracting

Providing a short, standardized statement reduces ambiguity during negotiation, aligns stakeholder expectations, and documents essential commercial terms before detailed drafting begins.

Who Typically Prepares or Receives a Preliminary Contract Statement

Common preparers include contracting officers, procurement specialists, project managers, and outside counsel who need a concise summary to begin drafting or review.

Recipients usually include internal approvers, counterparties, and any third parties who must confirm commercial assumptions prior to committing to a final agreement.

Essential Elements to Include in a Professional Statement

A well-constructed Preliminary Contract Statement is structured, concise, and focused on decision-driving items so that downstream drafting and approvals proceed from a shared factual baseline.

Parties

Identify each contracting entity by full legal name and entity type so signatures and corporate authority can be verified during final execution and due diligence.

Scope

Summarize goods, services, or deliverables with measurable outcomes and reference any attachments or exhibits that provide additional technical detail.

Price Estimate

Provide a specific amount or pricing method (unit rates, not-to-exceed, milestone payments) and note whether taxes or fees are included or excluded.

Timeline

State start and completion dates, key milestones, delivery windows, and any conditional scheduling tied to approvals or permits.

Conditions

List material contingencies such as financing, regulatory approvals, inspections, or third-party consents needed before binding performance begins.

Signatory Authority

Name the person(s) expected to sign the final contract and note any delegated authority limits or escalation for signatures above a monetary threshold.

Required Data Fields at a Glance

Legal Name: Full registered name

Contact Details: Email and phone

Scope Summary: Two–three line description

Estimated Price: Number or pricing method

Effective Date: MM/DD/YYYY format

Signature Line: Name, title, date

Step-by-Step: How to Complete the Statement

Follow these sequential actions to prepare a clear and usable Preliminary Contract Statement for internal review and counterparty circulation.

01

Gather details: Collect parties, scope description, and pricing data.
02

Draft summary: Write concise scope, timeline, and price lines.
03

Review internally: Route to procurement, legal, and project leads.
04

Share with counterparty: Send for acknowledgement or comment before drafting final contract.

Online Workflow Settings to Use for Reliable Routing

Configure eSignature workflows so the statement moves through approvals in a controlled, auditable order that matches your internal sign-off requirements.

Field	Configuration
Signature Order	Sequential signer routing
Authentication	Email or SMS code
Reminders	Auto-remind every 3 days
Retention	Export PDF + audit trail

Where to File or Send the Completed Statement

After approval, route the statement to the correct recipients and file it consistently so it supports final contracting and audit needs.

Internal Records: Store in contract management repository.
Counterparty: Send signed copy to vendor or client.
Procurement File: Attach to purchase request or bid file.
Legal Archive: Keep with draft agreements for audit trail.

Digital Signing and Technical Considerations

Choose a platform that supports secure eSigning, audit trails, and the integrations required by your systems-of-record.

Authentication: Email, SMS, or stronger methods
Integrations: CRM and document storage
Export Formats: PDF, DOCX, audit report

Ensure the platform you use meets any regulatory needs (for example HIPAA for healthcare) and can produce a tamper-evident PDF plus a signed audit trail for retention.

Typical Timing Expectations and Internal Deadlines

Set clear internal milestones for preparing, approving, and distributing the statement to prevent delays in drafting the full contract.

Preparation Window:

Create statement within 3–7 business days of vendor selection

Internal Review:

Allow 2–5 business days for procurement and legal review

Counterparty Response:

Request acknowledgement within 5–10 business days

Final Drafting:

Begin contract drafting once parties accept terms

Retention Start:

File signed statement with draft contract records

Common Mistakes to Avoid When Preparing the Statement

Leaving the price vague or using subjective terms like 'market rate' that create disagreement during drafting and approval.
Missing the full legal names of parties, which can cause delays or require amendments before final signatures.
Failing to document conditions precedent such as permits or financing, leading to disputes over when performance should begin.
Distributing an unsigned draft as if it were final, which can create expectation mismatches and improper reliance by recipients.

Risks and Potential Consequences of Inaccurate Statements

Contract Delay: Final agreement postponed

Cost Disputes: Higher negotiation costs

Reputational Harm: Supplier relationship strain

Regulatory Exposure: Noncompliance risk

Payment Withholding: Client may delay payments

Audit Findings: Internal control weaknesses

Comparison: signNow and Common eSignature Vendors

Price and feature trade-offs matter for high-volume Preliminary Contract Statements; the table below summarizes starting price and select features across major vendors.

	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, no credit card required	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No envelope cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Real-World Examples of How Statements Are Used

The examples below illustrate typical scenarios where a Preliminary Contract Statement reduced ambiguity and accelerated contract drafting.

Case Study: Property Acquisition

A regional broker summarized key purchase terms to speed board review and financing approval.

The concise format focused negotiations on price and closing date.
"I can process and execute all of these documents online with 100% compliance and built-in security. Whether on mobile or working offline, I can get forms back to their necessary parties efficiently," said Tim Martin, Founder of Martin Properties.

Case Study: Construction Procurement

A general contractor issued statements to shortlisted subcontractors to confirm scope and provisional pricing before final tender submission.

This reduced bid clarification rounds and aligned schedules.
"We felt most comfortable given the security posture and audit capabilities; the statement preserved core commitments while legal drafted the full contract," said Dan Rotelli, CEO at BIS.

Practical Tips for Accurate, Efficient Completion

Apply these practices to reduce rework, support approvals, and ensure the statement aligns with later contract drafting.

Use consistent templates

Standardized templates reduce interpretation errors, speed internal review cycles, and ensure required fields are not omitted.

Limit length

Keep the statement concise—prefer one page with bulletized terms so reviewers can act quickly and drafting can begin.

Document assumptions

Explicitly list pricing or schedule assumptions to avoid later disputes about what was intended during negotiations.

Preserve audit trail

Use an eSignature platform that provides a tamper-evident PDF and an exportable audit report for compliance and future reference.

Frequently Asked Questions About Preliminary Contract Statements

Answers to common practical and legal questions about using, signing, and storing Preliminary Contract Statements in U.S. transactions.

Need help? Contact support

Is an electronic statement legally enforceable?
Yes. Electronic signatures and records are legally valid under the federal ESIGN Act (15 U.S.C. §7001) and UETA where adopted; however exceptions apply for certain instruments such as wills and some court filings.
Do consumer disclosures apply?
If the statement triggers consumer-facing financial or benefit decisions, ESIGN requires a consumer disclosure and consent process before relying on electronic records.
When is notarization required?
Notarization is rarely required for a preliminary statement itself, but state law may require notarization or witnesses for underlying instruments; verify if the statement will attach to deeds or powers of attorney.
What authentication level is recommended?
Use at least email plus SMS authentication for commercial transactions; for higher-risk or regulated workflows, add identity proofing, KBA, or stronger methods.
How should I store signed copies?
Retain a tamper-evident PDF and the audit trail in a secure repository with access controls; export backups and follow retention policies aligned to IRS, HIPAA, or other applicable rules.
Can I update the statement after signing?
Yes, but any material changes should be documented in a revised statement or incorporated in the final contract; treat revisions as a new record and obtain fresh acknowledgements.

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