If you’re a business owner, then you know how crucial contracts are to making your business run smoothly. You also know that selecting the right contract for the right job is harder than it looks, and managing those contracts can be a nightmare.
Running a business shouldn’t have to be a nightmare, though. With new technology, managing your contracts is a synch. Take a look at the following 6 contract types and how managing them with a cloud-based contract management system will make your life easier.
A non-disclosure agreement is typically used by companies wishing to do business with one another, but who feel that they don’t have quite enough information to move forward. The NDA is used to confidentially exchange information with an agreement that neither party will divulge anything that is shared through the agreement. Generally, it is a mutual agreement, though it can be one sided, depending upon your business model.
Managing trade secrets through a 3rd party cloud-based system may seem slightly counterintuitive. Why would you put your secrets up on the web, out of your offices and personal network? There are actually several good reasons, and the two we’ll focus on are that the cloud actually promotes confidentiality and security. Online contract management software companies, like Concord Worldwide, have airtight network security. Your secrets are just as safe (and probably safer) online, encrypted and stored away in secure locations, as they would be in your office. Additionally though, keeping NDA’s in the cloud help make them easier to find, organize, and maintain because they’re all stored in a single location that all parties can view simultaneously. When you use a cloud-based system, you don’t have to haul your contracts around with you, email them, travel to view or sign, etc. because they’re always available via an internet connection.
For technology companies and inventive individuals, a licensing agreement is an important contract to know. Through a licensing agreement, another company/individuals can use whatever product you have patented. It may be accompanied by a fee on the part of the company or individual wishing to use your product. Most software companies use this type of agreement to allow you to download and use their product, but only after you have paid.
Bill of Sale
A bill of sale is fairly self explanatory. It is used to identify rightful owners and to prove that you purchased or sold some commodity. It’s easiest to manage these contracts online for the same reason that it is easiest to manage the NDA online: it can be accessed anytime, anywhere. It can also be shared between you and the vendor/purchaser of the product. Both parties can view the document simultaneously without ever meeting in person. It saves a lot of time to be able to edit, view, and sign a contract at your leisure.
This contract is used primarily for businesses that deal with loans. It is, in essence, a loan agreement. All of the stipulations of the loan are enumerated in this document—the interest rate, payment due dates, method of payment, collateral (if applicable), and any other information of which either party need be aware.
Aside from the ease of access for both parties, managing your contract online offers another incentive: deadline reminders. Both parties of the contract will receive deadline reminders via email, which means that there will be no missed payments or forgotten deadlines. You won’t miss another important date because the contract management system will remember it for you.
A related, though distinct type of contract is the residential lease. If you are renting out a house or set of apartments, then you know that these documents need to be updated frequently. People move in and out, and you need to have a stack of lease agreements ready to go.
When you manage your contracts online, you can save these lease agreements as templates, or even use the templates generated by the contract management company, and adjust them as needed. You can also review the cost of rent, deposits, damages, and other policies with potential renters before they sign.
The other thing that is very nice for you, especially when the renters are moving in from far away, is the e-sign feature. Potential renters, once you’ve had them look over the contract online, can even sign it virtually, and it is still just as legally binding in most countries as a physical signature. The only difference is that it’s more convenient for you.
That’s really what the idea is behind online contract management software. It’s much more convenient for you to manage your contracts online. Managing them online saves you time, and saving time means saving money. Cloud-based systems streamline the process of drafting, negotiating, awarding, and enforcing contracts, for even more reasons than we have listed here. For more information about other ways that you can save money with online contract management software, call 844-693-7446.