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Professional Digital Services Agreement

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PROFESSIONAL DIGITAL SERVICES AGREEMENT

This Professional Digital Services Agreement (the "Agreement") is made as of Effective Date: by and between Service Provider Name: (the "Service Provider"), and Client Name: (the "Client"). Service Provider and Client may each be referred to individually as a "Party" and collectively as the "Parties."

RECITALS

WHEREAS, Service Provider possesses experience and expertise in providing digital products, software development, design, consulting, and related services; and

WHEREAS, Client desires to engage Service Provider to perform certain digital services as described in this Agreement, and Service Provider is willing to provide such services under the terms and conditions set forth herein; and

WHEREAS, the Parties intend by this Agreement to set forth their respective rights and obligations with respect to the Services and Deliverables to be provided.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Parties agree as follows:

1. SERVICES

1.1 Scope. Service Provider shall provide the professional digital services and deliverables set forth in the Service Description attached as Exhibit A and incorporated herein by reference (the "Services" and "Deliverables"). Service Provider shall perform the Services in a professional, workmanlike manner consistent with industry standards.

1.2 Changes and Acceptance. Any material change to the Services shall be agreed in writing and signed by authorized representatives of both Parties. Deliverables will be deemed accepted unless Client provides a written notice of nonconformity within days of delivery, specifying the reasons for rejection.

2. FEES, INVOICING AND PAYMENT

2.1 Fees. Client shall pay Service Provider the fees for the Services as set forth: Fee Amount: payable in accordance with the Payment Schedule below.

2.2 Invoicing. Service Provider will submit invoices detailing fees, expenses, and applicable taxes. Client shall pay undisputed amounts within days of receipt. Late payments shall accrue interest at the lesser of 1.5% per month or the maximum allowed by law.

2.3 Expenses. Client shall reimburse reasonable, preapproved out-of-pocket expenses incurred by Service Provider. Reimbursement requires submission of receipts or substantiation.

3. TERM AND TERMINATION

3.1 Term. This Agreement commences on the Effective Date and continues until completion of the Services or until Term End Date: , unless earlier terminated pursuant to this Agreement.

3.2 Termination for Convenience. Either Party may terminate for convenience upon days' prior written notice to the other Party.

3.3 Termination for Cause. Either Party may terminate immediately upon written notice if the other Party materially breaches this Agreement and fails to cure such breach within days after receipt of written notice specifying the breach.

4. CONFIDENTIALITY

4.1 Definition. "Confidential Information" means non-public information disclosed by a Party that is designated confidential or that reasonably should be understood to be confidential given its nature.

4.2 Obligations. Each Party shall: (a) use Confidential Information solely for performance under this Agreement; (b) restrict disclosure to employees, contractors, and advisors with a need to know; and (c) protect Confidential Information with at least the same degree of care as it uses to protect its own confidential information, but no less than reasonable care.

4.3 Exclusions. Confidential Information does not include information that: (i) is or becomes publicly known through no breach; (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 disclosing Party is given prompt notice to seek protective measures.

5. INTELLECTUAL PROPERTY

5.1 Ownership of Preexisting Materials. Each Party retains all right, title and interest in its preexisting intellectual property. Service Provider grants no rights in its preexisting tools, templates, libraries, and methodologies except as expressly set forth in this Agreement.

5.2 Deliverables. Upon full payment of all fees due for the applicable Deliverable, Service Provider hereby assigns to Client all right, title and interest in the Deliverables to the extent created specifically for Client as a work made for hire under applicable law. To the extent assignment is not effective, Service Provider grants Client a perpetual, worldwide, non-exclusive, royalty-free license to use, reproduce, and modify such Deliverables for Client's internal business purposes.

5.3 Reservation of Rights. Service Provider retains all rights in any general know-how, tools, and techniques used or developed by Service Provider in the course of performing Services, provided no Confidential Information or Client materials are disclosed.

6. REPRESENTATIONS, WARRANTIES AND DISCLAIMERS

6.1 Mutual Representations. Each Party represents that it has full power and authority to enter into and perform this Agreement and that performance will not violate any agreement with a third party.

6.2 Service Provider Warranty. Service Provider warrants that the Services will be performed in a professional and workmanlike manner consistent with industry standards. For any breach of this warranty, Service Provider's sole obligation and Client's exclusive remedy shall be re-performance of the nonconforming Services or, if Service Provider cannot re-perform, refund of the fees paid for the nonconforming Services.

6.3 Disclaimer. EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION, SERVICE PROVIDER DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE AND NON-INFRINGEMENT.

7. INDEMNIFICATION

7.1 By Service Provider. Service Provider shall indemnify, defend and hold harmless Client from and against any third-party claims alleging that the Deliverables, when used as permitted, infringe a third party's intellectual property rights, provided Client gives prompt written notice and sole control of the defense to Service Provider.

7.2 By Client. Client shall indemnify, defend and hold harmless Service Provider from and against claims arising from Client's use of the Deliverables in combination with other materials, Client-provided content, or Client's breach of this Agreement.

8. LIMITATION OF LIABILITY

Except for liability arising from a Party's breach of confidentiality, wilful misconduct, or indemnification obligations, neither Party's aggregate liability for any claim arising under this Agreement shall exceed the total fees paid by Client to Service Provider under this Agreement during the month period preceding the claim or , whichever is greater. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES.

9. DATA PROTECTION

9.1 Compliance. Each Party shall comply with applicable data protection laws in respect of any personal data processed under this Agreement. Service Provider shall implement reasonable technical and organizational measures to protect personal data against unauthorized or unlawful processing and accidental loss, destruction, or damage.

9.2 Client Data. Client retains all rights, title and interest in Client Data. Service Provider shall process Client Data only in accordance with Client's documented instructions and this Agreement.

10. SUBCONTRACTING

Service Provider may engage subcontractors to perform parts of the Services provided that Service Provider remains responsible for subcontractor performance and ensures that subcontractors are bound by confidentiality and IP protection obligations no less protective than those contained herein.

11. NOTICES

All notices under this Agreement shall be in writing and delivered to the addresses set forth below by certified mail, overnight courier, or email with confirmation of receipt. Notices shall be effective upon receipt.

12. AMENDMENT; WAIVER

No amendment to this Agreement will be effective unless in writing and signed by authorized representatives of both Parties. Waiver of any breach shall not constitute waiver of any other breach or of the provision itself.

13. GOVERNING LAW; SEVERABILITY; ENTIRE AGREEMENT

13.1 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.

13.2 Severability. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect and the Parties shall negotiate in good faith to replace the invalid provision with a valid provision that achieves the Parties' original intent as closely as possible.

13.3 Entire Agreement. This Agreement, including any exhibits, schedules and attachments, constitutes the entire agreement between the Parties and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, relating to the subject matter hereof.

14. MISCELLANEOUS

14.1 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. Signatures transmitted by electronic means shall be binding.

14.2 Relationship of the Parties. The Parties are independent contractors. Nothing in this Agreement shall create a partnership, joint venture, employment relationship, or agency between the Parties.

SIGNATURES

Service Provider

Printed Name:

By:

Date:

Client

Printed Name:

By:

Date:

Enter text✕

What the Professional Digital Services Agreement Is

A Professional Digital Services Agreement is a written contract that sets out the scope, deliverables, payment terms, timelines, intellectual property ownership, confidentiality, and service-level expectations between a provider of digital services and a client. It governs rights and obligations for tasks such as design, development, hosting, maintenance, and digital marketing, and typically includes change-order mechanics, acceptance criteria, pricing, invoicing schedules, termination rights, and dispute resolution. When executed properly, it reduces ambiguity and documents the agreed commercial and technical responsibilities that will guide project delivery and payments.

Why a Clear Agreement Matters for Digital Work

A well-drafted Professional Digital Services Agreement reduces scope disputes, sets payment expectations, protects intellectual property, and creates an auditable record of performance and acceptance criteria for both parties. It also defines liabilities and limits risks tied to data handling, third-party services, and timelines.

Why a Clear Agreement Matters for Digital Work

Typical Users and When They Need It

Use this agreement whenever a formal record of service obligations, payment terms, IP assignment, or data-handling requirements is needed to reduce misunderstandings and preserve enforceability.

  • Independent consultants and freelancers managing scope, deliverables, and payment schedules with clients.
  • Digital agencies contracting for multi-phase projects and subcontractor coordination.
  • In-house procurement or legal teams standardizing vendor terms across marketing and IT vendors.

Authorized Signers and Their Roles

Vendor Owner

A principal or authorized officer who can bind the vendor for fees, warranties, and IP assignments. Their signature confirms acceptance of pricing, delivery milestones, and liability limits on behalf of the vendor.

Client Representative

An employee or procurement officer authorized to accept deliverables, issue approvals, and authorize payments. This signer confirms the client’s consent to the contract and any post-signature change orders.

Core Sections to Include in the Agreement

A complete Professional Digital Services Agreement should include clear language on service scope, payment, timelines, IP, confidentiality, warranties, and termination to minimize disputes and support enforceability.

Scope of Services

Describe deliverables, milestones, acceptance criteria, and exclusions in detail so both parties share a precise understanding of expected outputs and work boundaries.

Fees & Payment

Specify fees, invoicing cadence, late-payment interest, expenses, and any retainers or milestone payment triggers to avoid billing disputes and clarify cash flow expectations.

Term & Termination

Define the agreement start and end dates, renewal mechanics, termination for convenience or breach, notice periods, and post-termination obligations.

Intellectual Property

State whether deliverables are work-for-hire, assignment terms, license scope, and ownership of pre-existing or third-party components incorporated into deliverables.

Confidentiality & Data

Include confidentiality obligations, permitted disclosures, data-handling responsibilities, security standards, and breach notification timelines aligned with HIPAA or other industry rules when applicable.

Warranties & Liability

Limitations on liability, warranty duration, indemnity scope, and any service credits or remedies for nonperformance to control risk exposure.

Step-by-Step: Preparing and Signing the Agreement

Follow these steps to draft, review, and complete the Professional Digital Services Agreement efficiently and with an auditable record.

  • 01
    Prepare Document: Assemble SOWs, exhibits, and pricing into a single contract document.
  • 02
    Place Fields: Add signature, date, and initial fields and any conditional fields for optional clauses.
  • 03
    Assign Signers: Specify signer order and authentication level for each party.
  • 04
    Send & Record: Send for signature and retain the audit trail and final signed PDF for records.

Typical Digital Workflow Settings for This Agreement

Configure a consistent template and routing to streamline repeated use and to preserve legal evidence of execution.

Field Configuration
Signature Type Electronic signature with audit trail
Authentication Level Email link or SMS code; use higher KBA for sensitive data
Routing Order Sequential signer order with reminders
Storage Location Secure cloud storage with retention policy

Where Signed Copies Typically Go

After execution, route signed copies and the audit trail to the key internal teams and external stakeholders for compliance and recordkeeping.

  • Client Records: Final signed agreement stored in client contract repository or procurement system.
  • Vendor Accounting: Send invoice and signed agreement to accounts payable for payment processing.
  • Project Team: Share deliverables and milestone schedule with project managers and delivery teams.
  • Legal Team: Retain signed copy and audit trail for dispute resolution and compliance review.

Technical Requirements for Digital Execution

Confirm platform authentication options, audit trail detail, and retention controls match your legal and operational requirements before executing.

  • Integrations: Connectors for Salesforce, NetSuite, Google Workspace, and document storage simplify routing and archival.
  • Document Formats: Support for PDF and Word DOCX ensures template fidelity and exportability.
  • Compliance: Platform should support AES-256 at rest and TLS 1.2/1.3 in transit.

Key Milestones from Draft to Service Start

Track milestones sequentially so each party understands when deliverables, approvals, and payments occur.

01

Draft Completion

Finalize draft and attach SOWs and exhibits before sharing with the counterparty.

02

Review & Negotiation

Allow set period for redlines and internal approvals prior to signature.

03

Execution

All authorized signers sign and the platform records the audit trail.

04

Service Commencement

Begin work on the effective date or agreed project start date.

Time-Sensitive Dates to Capture in the Agreement

Include explicit dates and deadline language to avoid ambiguity about payment timing, renewal notices, and acceptance testing.

Effective Date:

The date the agreement becomes enforceable and obligations begin.

Deliverable Due Dates:

List milestone dates and acceptance windows for each deliverable.

Payment Due Dates:

Specify invoice due days, e.g., Net 30, and interest on late payments.

Renewal Notice:

State notice period for renewals or nonrenewal, commonly 30–60 days.

Records Retention:

Define retention responsibilities for signed agreements and related records.

Common Preparation Errors to Avoid

  • Using informal names or abbreviations for parties, which can create ambiguity and enforcement problems later.
  • Omitting or vaguely defining deliverables and acceptance criteria, causing scope disputes during implementation.
  • Missing or inconsistent dates in signature blocks, which can create questions about when obligations began.
  • Failing to attach referenced exhibits or SOWs, making key terms unenforceable or incomplete.

Consequences of an Incorrect or Incomplete Agreement

Unenforceable Agreement: Loss of contractual remedies
Monetary Damages: Compensatory or consequential losses
Regulatory Exposure: Fines for data-handling breaches
Intellectual Property Risk: Unclear ownership disputes
Payment Disputes: Withholding or delayed payments
Operational Delays: Project start or delivery interruptions

Security and Compliance Controls to Include

Encryption: AES-256 at rest; TLS 1.2/1.3
Audit Trail: Timestamps, IP, and action log
HIPAA BAA: Business Associate Agreement required
21 CFR Part 11: Support for FDA-regulated records
Access Controls: Role-based permissions and SSO
Retention Controls: Configurable retention and export

Real-World Examples of Use

These customer scenarios illustrate how organizations apply electronic execution and templates to streamline professional services contracting.

Optica Ventures — COO

Optica simplified customer execution across deal flows with a standardized digital contract.

  • The interface stayed simple for internal and external users.
  • Brian Fitzgibbons, COO, noted the ease-of-use for both team members and customers while maintaining a consistent signing process and document record.

Xerox — NetSuite Operations

Xerox integrated digital signing into ERP workflows to match formats and routing needs.

  • Integration with NetSuite enabled format flexibility.
  • Kodi‑Marie Evans, Director of NetSuite Operations, emphasized the flexibility to get the right signatures in the right formats using integrated workflows tied to internal systems.

Comparing eSignature Providers for This Agreement

The table compares starting prices and core features relevant to executing Professional Digital Services Agreements; signNow is listed first for reference.

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 Varies Varies

Frequently Asked Questions and Troubleshooting

Answers to common execution, enforceability, and platform questions when using digital signatures for service agreements.


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