Digital agreements are changing the way organizations conduct their business. They not only speed up the signature and approval process but they also eliminate the hassle of manually routing paper agreements. It is quite easy to implement a digital agreement in your workflow, and the first plan of action is to establish a master signature policy. Click right here for the smart contracts. That aside, there are many more factors to consider when creating digital agreements and here are just but a few.
Call out the exceptions
When creating digital contracts, it’s important that you set out limitations regardless of the general policy in place. For instance, organizations should consider excluding agreements that take into account family law, real-property transfers and highly regulated industries. Take note that the risk analysis is important since it helps you determine the kind of exceptions that should be contained in your policy
The opt-out clauses
Every signer needs to be given a chance to opt out of signing a digital agreement. The procedure to be followed by those who sign by hand should also be done electronically, but it should follow the e-signature laws. This is important because it provides an additional assurance in case of any disputes. Also, it’s important for the signers to receive an executed copy of the agreement as part of the signature workflow. Most of the workflows are customizable which makes it easy to settle on a process that is ideal for your organization
Choose the required disclosures and best practices
It’s important for your policy to include specific disclosures and best practices. Take note that some disclosures are required by law, and it’s important that you critically evaluate your organization’s agreement and the local laws to ensure that they are in line with your business needs. Once this is done, you can go ahead and adopt the practices that best suit your requirements. For instance, most of the e-signature laws require consent to conduct business electronically and given that most of the e-signature solutions come with consent built into them you don’t have to alter your documents.
Evaluate your agreements
The first step to developing a digital agreement is to assess the kind of contracts that works best for e-signatures. Most of the e-signatures work just fine for most agreements, but it’s important to consider factors such as the governing laws of all involved parties, procurement agreements as well as the monetary value of the purchase and sales agreements. Also, some companies might be risk-adverse compared to others, and therefore you should conduct a risk assessment to evaluate the agreements that work best with your companies e-signature workflow.