ACROBAT FOR BUSINESS | 6-MINUTE READ
Electronic contract signing for business.
Secure your business with trusted contracts.
Content as a Service - b2b-seo-caas-tags - Wednesday, October 10, 2024 at 3:51
A contract is a legal agreement between people who want to conduct business together. Its digital counterpart, an online contract, is designed for all involved to access, review, and sign when ready.
Formalize business agreements with an online contract.
Online contracts are vital business documents because they lay out all the details of a project or deal. These files can be used to outline who is responsible for each deliverable in a relationship, the duration and inclusions of a project, and the level of confidentiality required.
Online contracts can help professionals create agreements across industries and teams. The following are a few common online contract examples according to job function:
- Sales — purchase orders, invoices, estimates, statements of work, quotes, bills of sale
- Human resources — employment offers, permanent contracts, consulting agreements
- Legal — confidentiality agreements, non-disclosure agreements, warranties, intellectual property licensing
- Operations — times and materials contracts, unit price contracts, supply agreements
- IT — terms of use, end user licensing agreements, maintenance and support agreements
- Marketing — influencer agreements, photography releases, exhibit space rentals
- Partnerships — limited liability, general, joint venture
- Financial — leases, promissory notes, subscriptions, insurance
By making these contracts more accessible through online development, hosting, and distribution, businesses can expedite many critical components of their day-to-day activities, including electronic contract signing. Users typically can access online contracts with a variety of installed and browser-based software tools via secure links that are centrally managed by the company issuing the contract. What's more, with AI Assistant, you can save time by summarizing your docs in a click, asking questions to get quick answers, and helping summarize complex terms in contracts.
Electronic contract signing benefits.
As the way we increasingly conduct business moves online, electronic contracts are becoming more common than ever before. At their core, online contracts make it easier for companies to conduct business.
Making the move to electronic contract signing offers companies several benefits. As you consider your options, be sure you have the right integrations and software available to you:
- Integration. Ensure the electronic contract signing software you adopt is compatible with existing programs for creating and managing important files.
- History. Confirm you can create an audit trail for those who have reviewed and signed a document to create accountability for everyone involved in the contract approval.
- Compliance. Review whether you can prevent documents from being altered and ensure that the contract you execute is accurate throughout the review process.
- Efficiency. Note your potential time savings by electronically routing files for review rather than passing around physical copies that can get lost or damaged.
- Security. Research encryption and other means of digital tracking to ensure signatures are genuine when moving forward.
- Costs. Evaluate the overhead associated with printing, mailing, and storing hard copies and how much you’ll save when you go digital.
- Sustainability. Review the resources you’ll save by limiting or eliminating the need for paper usage and reducing your company’s overall carbon footprint.
- Access. Evaluate the software to ensure the right people can access the right files at the right times while managing role-based permissions for a need-to-know approach.
- Accuracy. Look for automation functionality from filling templates to tracking and ensuring correct approvals. Electronic contracts can help you reduce human error.
How to sign a contract electronically.
After you write a contract and have a document ready for electronic signatures, follow these steps.
Sign a contract online yourself.
Adobe Acrobat makes it easy to create a digital signature:
- Click the review link and choose to sign digitally.
- Select signature source and select name.
- Sign in and apply your digital signature.
- Preview signature.
- Authenticate the signature.
- Send your signed document.
Electronic contract signing with two parties.
Acrobat makes gathering electronic signatures easy. Select All Tools › Request e-signatures, and Acrobat will prompt you to enter email addresses for the people you want to sign your contract.
You can even password-protect the contract to ensure only the involved parties can open it. Set a completion deadline with automated reminders that prompt recipients to take action if the contract is in their inbox for too long. Add branding to signature requests for a more personalized customer experience.
Electronic contract signing using automation.
Whether you’re working with a high volume of contracts or are new to taking your document management online, an automated signature can help streamline an otherwise repetitive process.
Using the right electronic contract signing software can make it easier to track not only what contracts have been approved but also who signed the contract and when. These details can become essential to keeping projects and pipelines on track with projections and expected deliverables.
Adding automation to the mix can further streamline efforts, especially for online contracts that require multiple signatures by a set deadline. Automation tools can enable you to:
- Send the initial contract out for review
- Track feedback or comments
- Collect signatures and verify identities
- Issue reminders for past-due approvals
- Provide copies for customer records
Automated signatures store all the information needed to sign electronic contracts while helping users remain consistent with branding or legal requirements. Acrobat PDF tools include e-signature management options that allow users to quickly and securely sign contracts and other documents using templates.
Overall, automated signatures simplify document signing and bring numerous benefits to the contract approval process, including:
- Quicker approval processes
- Reduced paperwork
- Increase security
- Lower overhead expenses
- Smoother recipient experiences
Steps to confirm before signing a contract electronically.
Individual contracts vary in length, complexity, and particular terms. Always consult the experts. Find a law firm that specializes in your industry so you can get legal advice as needed.
Always consider these five essential elements of an online contract.
1. Awareness
All parties to a contract know about the agreement they’re entering into. Ideally, everyone involved participates freely without being strongly convinced. Anyone signing the contract should be willing to put their name in the agreement, or the terms could become invalid if contested later.
2. Consideration
Contracts have to include the value of what’s agreed upon, like a product, property, or service. A monetary amount doesn’t have to be attached, but all parties must acknowledge that the thing or service has an agreed-upon value. For example, a vendor will detail the provided product or service in exchange for a set price by a customer.
3. Capacity
Everyone signing contracts needs to understand the terms of the agreement and be of sound mind (they comprehend what is happening around them). Parties who are forced to sign a contract against their will or who cannot understand what the contract means do not have the capacity to be a signatory. Those signing an online contract must also have permission from their company and the ability to stand by the document to ensure its terms.
4. Legality
Contracts must comply with the federal, state, and local laws and regulations in the area where you reside and do business.
5. Details
Also known as the terms of the contract, this is where the document records all components included in an agreement and explicitly identifies items that will not be part of the engagement. The components of contracts vary depending on the industry, but parties must outline all significant details in the contract. Anything left up for interpretation can cause confusion later, so precise explanations in every clause are key. The contract should include:
- Identity and contact information. Name both parties and how to get in contact with them.
- Purpose of the contract. List the purpose of the agreement and any underlying assumptions.
- Deliverables. Detail everything that both parties are expected to provide, including line items, products, services, and costs.
- Signers’ obligations and rights. Name the duties and rights that each party will have in the arrangement.
- Timeline details. Note the duration of the contract and list essential dates or milestones.
- Definitions. Explain critical terms to clarify any proprietary or ambiguous language used in the contract.
- Payment terms. Describe how payments will be handled, including dates and dollar amounts.
- Warranties and disclaimers. List what one party is or isn’t guaranteeing to the other party.
- Liabilities and indemnification. Identify who is responsible for damages and who is protected from liability.
- Provisions. Note any special considerations such as expiration dates, obligations, or confidentiality.
- Penalties. Outline the damages to be assessed in the event of a contract breach.
- Signatures for both parties. Complete the contract with each party’s signature.
When you move your contract management process online, you’ll save time and money and avoid hassle for yourself and the person signing. You and your clients can sign contracts on the go, from any device, and easily organize your documents in the cloud.
Try Acrobat for business today to see how quickly and easily contracts can be signed digitally with e-sign software.
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Electronic contract signing for business.
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