With increasing automation, paper contracts are a thing of the past. Digital contracts increase efficiency and enable companies to keep pace with their competitors.
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What is digital contract?
Digital Contract is the English term for electronic contract, which is created and signed digitally so that businesses don’t have to worry about paper documents. The use of digital contracts has been on the rise in recent years and has become increasingly popular since the COVID-19 crisis. Many companies now use the principle of digital contracts on a daily basis, as they are the most convenient way to make business agreements.
What are the differences between digital Contracts and traditional contracts?
There are many differences between digital contracts and traditional contracts. Some of the most important ones are:
- Time The time it takes to create a traditional contract or an electronic contract differs drastically. Digital Contracts can be created and signed much faster than paper legal documents.
With a digital contract, everyone has access to the same legal document from their own computer. Plus, the entire process is automated and streamlined; contracts are created with just a few clicks. And by using electronic signatures, the signing can be done from anywhere and at any time.
- Cost A Digital Contract is significantly less expensive than a traditional contract. Considering the paper costs of contracts (postage, printing, etc.) and the man-hours required to create these traditional contracts, it stands to reason that a digital contract is much cheaper.
When a company deals with a lot of contracts, these costs add up - digital contracts can save a lot of money.
- Errors The traditional contract lifecycle naturally leads to many errors. When creating contracts, it’s easy for employees to inadvertently make a mistake - given the complexity of legal documents, this is not uncommon.
Switching to a digital contract significantly reduces the risk of human error. With digital contracts, both parties can view and edit the document on their own time, which means less hassle. In addition, with digital Contracts, many important contract elements - such as name or address - are filled in automatically, which reduces the risk of errors. Digital approval processes also greatly reduce errors and ensure work is done on the correct version of the contract.
Digital Contract and its benefits
Real-time collaboration through digital contracts The features integrated in contract management software enable all parties to collaborate and share content simultaneously in real time. By eliminating the time-consuming process of sending documents back and forth, the lifecycle of contracts is shortened, allowing contracts, and therefore deals, to be completed more quickly. This is an important benefit of digital contracts.
Integration of enterprise solutions with digital contracts Transitioning to new software can be challenging for teams. Integrating solutions makes it easier to move to digital Contracts software. Most digital Contracts apps integrate with solutions they are familiar with, such as Salesforce, Google Drive, etc.
Digital Contract Templates With contract management software, it is easy to use pre-made digital contract templates or create your own templates to automatically fill in the information in the contracts. This saves a lot of time and sources of errors.
Centralized contract administration through digital contracts Organizing paper contracts can be a nightmare. Companies waste time searching through filing cabinets for the right document; with contract management systems and digital Contract, this is a thing of the past. Many apps offer a central database where you can store your digital Contracts to keep track of them at all times.
Digital contract and the electronic signature Manual contract signing lengthens the contract cycle, resulting in less efficient deals. Electronic signatures are an essential part of the digital contract and streamline the contract signing process by transmitting signature-ready documents instantly. This eliminates the need to wait for a physical signature.
Digital contracts are the future of business transactions. It’s easy to see why many businesses have moved to paperless contracts; they make processes convenient, simple and efficient. If you want your business to keep up with the competition, you should also adopt digital contracts to stay ahead of the curve.
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