Digital Contracts – A Future That Is Now Here

digital contracts

With automation on the rise, paper contracts are a thing of the past. Digital contract signing increases efficiency, thus allowing businesses to keep up with their competitors.

The Advantages of Electronic Contract Signing

COVID-19 has certainly boosted the need for workplace technology. Because of their efficiency, the use of e-contracts has risen since then. As a result digital contracts are no longer a passing fad. Consequently, if you want to do business successfully in the modern world, you must understand the subtleties of digital contracts.

What is a digital contract?

An e-contract is generated and signed online, eliminating the need for physical documentation. Digital contracts have grown in popularity over the last 20 years. Especially following the implementation of COVID-19 restrictions and working from home. Many companies now use them daily since they are the most convenient way to establish business agreements. 

Are digital contracts legal?

The Electronic Signatures in Global and National Commerce Act (ESIGN)

The ESIGN Act is a piece of federal law that was enacted in 2000. Therefore the statute makes most digital contract signings as lawful and enforceable as traditional paper contract signings.

The Uniform Electronic Transactions Act (UETA)

Almost all US states have adopted the UETA or other e-signature laws. These laws establish that digital contracts are legally binding, similar to the federal legislation of the ESIGN act.

European Legislation

The directives in EU harmonise key consumer contract law rules across the EU. This will ensure a high level of consumer protection and increase legal certainty for both consumers and traders in millions of everyday transactions concerning goods, smart goods, digital content and digital services.

What special features does digital contract software have compared to paper management?

Real-time collaboration

Real-time collaboration tools included into contract management software enable all stakeholders to participate to the proposal at the same time. Eliminating the time spent transferring documents back and forth shortens the life cycle of the agreement, allowing you to conclude agreements faster than previously.

Business solutions integration

Transitioning to new software may be difficult for teams. But the integration of solutions facilitates the transition to digital contract software. Most digital contract apps interface with their preferred solutions, such as SalesForce, Okta, Google Drive, and others.

Digital contract template options

When using paper to make business agreements, you have to input all elements, causing delays. With contract management software, you can use a pre-made template or create your own to auto-fill information on documents.

Single contract repository

With paper contracts, organization may be a headache. Companies squander time rummaging through file cabinets for the right document, but contract management tools eliminate this need. Many apps feature a repository, so you can store your digital contracts to keep track of them easily. 

Digital contract signing

Manual contract signature extends the contract cycle, resulting in less efficient transaction closings. E-signatures speed up agreement signing by transmitting ready-to-sign papers right away, eliminating the need for a physical signature.

Why should you move to digital contracts?

Strengthen partnerships

A venture is a contract at the heart of any firm, making the agreement process critical for a good connection. Through digitalizing the agreement process, automation may strengthen relationships by making it more simple and straightforward for all parties, leading to higher negotiation success.

Increase productivity levels

Manual contracts are time-consuming, resulting in lower production levels. Therefore contract software solutions should be integrated into your workflow if you want to boost profitability and efficiency. Automation increases productivity by simplifying all phases of the agreement process.

Reduce errors

Human error is an inevitable consequence of reaching agreements manually. Such contracts may lead to a faulty deal or worse, a document that’s invalid and therefore not legally binding. However a good CMS minimizes mistakes by automating these processes and bringing possible errors to your attention.

Meet deadlines

If your organization handles many deals every day, it is simple to overlook crucial deadlines. Missed deadlines may be costly and inefficient, as they delay the contract’s life cycle. You may set up digital automation software to send you reminders as critical dates approach, so you don’t lose out on the opportunity to renew or cancel contracts.

How can you make transitioning to digital contracts easier?

Choose a reputable provider

Since e-contract technologies have been available for decades, there are numerous reliable vendors to pick from. DocuSign, PandaDoc, and Concord have established themselves as some of the leading vendors.

Start small

After opting to use an automated procedure, you and your colleagues should look for low-risk chances to test the program. To test out e-contracts, consider using internal papers and engagement letters.

Integrate into existing workflows

Transitioning to new software is more manageable when users can keep the workflow processes they’re comfortable with. Solutions integration lets your employees switch to digital contracts at their own pace.

Digital contracts are the way of the future for business transactions. It’s easy to see why many firms have gone paperless; they make procedures more comfortable, straightforward, and efficient. If you want your firm to stay ahead of the competition, you should use digital contracts.

Check out other helpful content:

Read more of our articles:

How Can an Online Negotiation Platform Scale Your Business? NDA Explained – What Is An NDA? Why to implement a CMS in your company? What Is Contract Renewal? Tips And Best Practices How A Contract Management System Can Help You Save Money Why does Ordema make tracking contracts easier? What Is An E Contract And Why Is It Better Than A Traditional Contract? UK’s Own Set Of Standard Contractual Clauses Comes Into Effect Contract Amendment VS Addendum. What Are The Differences? YOU need digital contract management! What is a DPA ? SOW – Statement of work