Contracts are at the very heart of commerce – they often govern each and every dollar that comes in or goes out of an organization. And yet, using contract processes that are highly inefficient remains one of a business’ most common challenges.
Businesses enter into contracts for certainty. But did you know that all contracts - no matter how well written - involve a degree of risk? Contracts, in fact, may actually create risk in business transactions. From initiation and negotiation to award and renewal, contracts involve complex actions that can and do go wrong. The goods news is that contract Lifecycle Management (CLM) software can help to mitigate that risk. In this article, we review the nine stages of CLM and offer ideas on best practices to ensure that your business runs as smoothly as possible.
For businesses that have grown beyond a certain size, efficiently managing contracts is a full-time responsibility.
The signatories of a contract have a lot on their plate during the document’s lifecycle. Among other tasks, the organization needs to ensure that it meets all deadlines, provides all deliverables, and adheres to all requirements outlined in the contract.
In order to handle these duties, many businesses hire one or more contract administrators. But what is a contract administrator exactly, and how do they carry out their daily responsibilities?
A contract is an agreement that imposes obligations on both parties. But when does a back-and-forth negotiation turn into a contract that holds up in court? Legislation and past cases have developed many essential rules that every business owner should know.
Companies enter into contracts as a routine part of business. But some contractual elements could put your business at risk for breach of contract, negative financial consequences and more.
“Initiate a proper handshake and the whole world opens up for you.” ― James D Wilson
Contracts form the cornerstone of your business. They are formal promises between parties, essential agreements that govern every aspect of your daily operations. Contracts are not simply legal technicalities: They can also set the tone of a relationship. Choosing to uphold your responsibilities in a contract, and the actions you take when obligations are not met, both say a lot about how you do business.
An eContract, or electronic contract, is a legal document created and signed online. It is essentially a digital version of a traditional paper contract. As with paper contracts, eContracts are agreements signed by two parties. They are enforceable and legally binding documents that are typically used regarding employment, sales, services, or tenancy. With a typical paper contract, one party drafts an “offer” and the other party reads over it. If both parties agree to the terms and conditions listed in this initial offer, they will each sign the document and it becomes a valid contract. Each party must hold up to their end of the agreement or they face the risk of legal recourse. This is no different with an eContract. Although a paper copy is not presented, a digital signature still enters both parties into a legal agreement.
If you need a more convenient and secure way to get your documents signed, a digital signature platform is the answer. Digital signatures provide technical advantages over traditional contract-signing methods and are fully enforceable in court. An online digital signature platform helps you quickly and efficiently integrate them into your business.
Contract management software is designed to make life easier for legal, contract managers, and business users. And it does – once it is implemented. An experienced software vendor can help make your implementation a success, but your organization is a crucial partner in that work. Here are four tips for ensuring that your contract management software implementation is a success.