The step involving the execution of contracts by signing and stamping of a document is quintessential for concluding a contract lifecycle. In the case of digital agreements, this stage necessarily involves the execution of documents with the assistance of an electronic signature platform encrypted in a digital contract. It authenticates the contract and carries a host of benefits for the end-user. E-signature is relevant even more in times when both the parties to the digital contract,

The conventional method of placing a signature with 'wet ink' has had to be done away with during the present times of the global pandemic where social distancing has become a norm. It has also necessitated lawyers to adopt technology for end-to-end contract management, including the execution of the contract using electronic signatures; thereby, drawing smart contracts to a finality. To this end, electronic execution of documents with e-signature is legally binding between the parties to the contract. We take a closer look at the platform and how lawyers and legal departments may capitalize on the overall benefits of digital signature platforms.

Contract management software

Communication and assessment for Contract management approval

The cornerstone of the world of business is the professional contract between parties. Contracts makes legal and binding the agreement and terms between parties – to deliver service in accordance with certain parameters such defined outputs, speed, timeliness, quality, security, confidentiality and so on. Contracts ensure transparency, equity, safety, and greater trust in business dealings. So, managing contracts efficiently is essential for professionals and businesses.

Until recently, businesses and professionals didn’t have options to manage their contracts other than the approach of creating, storing, retrieving, and searching contracts manually. This approach brings with it the frustrations of lost or misplaced papers, the loss in productivity because slippage in service level agreements were overlooked, the risks invited because compliance slippage was not identified in time or the risk of a loss of a contract related to breach of milestone or clause. Instead, a fully automated contract management system provides businesses and professionals the capability to manage contracts in way that makes it very easy and simple.

With a full automated contract management system, you can:

View contracts easily, quickly, have contract details and fine print at the click of a few buttons.
Track contracts from the point of view service level agreements performance, contracts milestones, commitments, and obligations easily and quickly.
Collaborate, communicate, and negotiate with all stakeholders through a common, automated and integrated platform where everyone has visibility of the contract details so that there are fewer misunderstandings and greater trust.
Document assembly automates the creation of transaction-based documents with minimal data input error and with minimal duplication of effort.
Never lose track of contracts since there are stored in a central repository
Stay informed through alerts about non-conformance, breaches and slippages for you to act on.

Contract management software vastly improves business intelligence, productivity, and bottom line. An independent study has found that nearly 65% of enterprises report that contract lifecycle management reduces significant exposure to financial and legal risk.

Digitized signature: how does it work for agreements and contracts?

Electronic signatures may be generated by eSign online Electronic Signature Service or third-party service providers based on the secure cryptographic implementations. Most of the platforms commonly use electronic authentication methods such as email, corporate ID, PIN, sent on email, or mobile phones. The process may be simple, but it entails several criteria to the extent that the digital signatures must be unique, the signatory must have access and control of the data. The certification has to be issued by a registered certifying authority. While it explains the process involved, the proof of digital contract signing is demonstrated through an audit trail of the process involved in securing the document.

General Exceptions where E-signatures are not tenable

On record, an electronically executed cannot be denied legal effect simply because they are executed through digital signing software. The thumb rule of the matter is that where hand signatures are accepted, so are the digital names an acceptable practice. There are certain exceptions, however, where e-signatures cannot be used, in cases off

Negotiable instruments, bill of exchange, promissory notes or a bank cheque
Wills and testaments
Power of attorney
Real estate contracts, lease or sales agreement

How are electronic signatures particularly beneficial for the legal service providers?

There are a host of reasons and benefits of digital signatures that one can think of when it comes to integrating e-signature platforms as a part of the Legal Contract Management Platform. They are quick, prompt, safe, secure, and full control over the documents stored on the one-touch repository. Under this, the user

May store or retrieve contracts that are electronically signed and executed-Easy workflow processes in place,

Large organizations may find it beneficial to gather, track and manage signatures or approval of documents in their repository-Hence, justifying the ease of conducting business,

Validity, enforceability, and admissibility- Explains a transparent execution of documents.

Execution of electronic signatures: The legal perspective

E-signatures are permissible under law and carry the same weightage as that of the physical signatures. Following the passing of various acts across the globe to facilitate commerce using digital signatures, more than 60 countries have recognized the evidentiary and legal value for digital signatures.

While the intent here is to authenticate documents and contracts, the benefits of e-signature using the underlying technology consider the privacy, security, and authenticity of the communications that take place digitally. To this end, electronic signatures:

Facilitates prompt and secure execution of documents,

Carry the same evidentiary value as that of the 'wet signature'

Provide a smooth transition towards a paperless contract

It has a binding effect, legal validity and may be purported as evidence before the courts of law.

Conclusion