Currently, electronic signatures are used in most nations throughout the world. As technology has advanced and electronic signatures have been made legal, they have grown increasingly widely used.
This only applies in the developed world, where solutions are readily available.
There are a number of important advantages to creating an online signature and contract management system that may be classified into three categories.
Why Use an Electronic Contract Signing System?
Contracts can be signed online for three main reasons:
- The signature process is faster.
- Increased transparency and honesty.
- Data integrity and compliance have been improved.
Let’s take a closer look at each one of them one by one.
1. The Signature Process is Faster
Adding an electronic signature to Word saves both the signer and the document a significant amount of time when compared to the traditional technique of physically signing the document.
In the past, you may have needed to arrange for the delivery of documents or meetings with the signing parties, but today, all you need to do is follow the online instructions.
Even if contracts are signed and scanned electronically, delays are possible since the signers must be in the same place as the document to complete signing.
Electronic signatures can be used to securely sign a contract from any internet-enabled device in order to speed up the signing procedure.
2. Increased Transparency and Honesty
Because they are conducting business entirely digitally, the contract’s signatories benefit from having full electronic audit records at their disposal.
Comprehensive contract management systems make sure that the audit trail contains all important information from the redlining and negotiation process leading up to the signing of the contract and the actual file itself.
Any previous drafts that were reviewed before the final agreement was signed will be listed here, along with the names and contact information of the people who evaluated and commented on the contract. It will be clear to everyone involved in the signing process if there is any uncertainty in the contract at any point in time.
All changes and adjustments will be time-stamped and carefully documented to reduce the probability of fraud.
Additionally, extra metadata may be recorded while taking a signature, such as the date, time, and the identity of the signer.
Recording additional information such as a location’s IP address or a type of equipment will help answer any questions you may have in the future about how a procedure works.
It is easier to set up a contract for ongoing maintenance using a contract management system with integrated electronic signatures rather than a separate electronic signature system. It is majorly used for electronic signature real estate contracts and small business.
3. Data Integrity and Compliance have been Improved
The legal or contract team has complete control over the contract approval process when using an electronic signature technique like Google Docs or any other document procedure in an automated workflow.
Because of this, a formerly haphazard practice can now be meticulously monitored and regulated throughout the organisation.
You can use a workflow engine to dictate the entire sign-off procedure and guarantee that it complies with all applicable compliance standards, both internally and externally (SLA).
Stakeholders will be unable to entirely circumvent the system because of the inclusion of the electronic signature phase.
In this way, the contract and any events associated with it can be documented in full and kept on file for future reference.
Each stage of the process can be utilised for this purpose in some way.
Contract management’s most crucial symbol of what has been done and what will be done is a tiny part of what goes on, but that’s exactly why it’s so important.
The finest free electronic signature software can help you learn a lot about the signature and the promise it conveys by allowing you to convert it.
If an audit trail is needed, it will be more difficult to construct with these solutions because they do not have the capability to manage obligations and renewals.
An e-signature function in a contract management system helps speed up the signing process and improve the contract record simultaneously.