How Zoho’s Latest App Can Simplify Contract Management
In the modern world, contracts are a necessity. Not only do they protect the parties to a transaction, they clarify roles and expectations and—if they are good—help to prevent unnecessary conflict between partners.
Regardless of your industry, you probably have to deal with contracts at some point in your value chain. The good news is that improvements in technology have streamlined the contracting process such that, in many cases, there is little need for lawyers. And who doesn’t like that? (Other than lawyers.)
1. Creation
When it comes time to draft a new contract, software makes it easy with templates and clause libraries. While some details will vary by transaction, most legal necessities, like severability and nondisclosure or non-compete clauses, will stay the same from document to document.
Good software will include a creation wizard that can generate contracts in an instant based on responses to a handful of questions. Customize the text within the software, without switching to a word processor. You can even track changes and comments and share with as many parties as you need.
Nor is it even necessary to start with a phone call. Contract management software can be initiated by an external request and terms proposed or declined from within the editor. There should even be a library of standard clauses to choose from.
With dozens of templates, there’s usually a good starting place already available regardless of your industry. If not, any contract drafted by legal staff can easily be turned into a template for future use.
2. Approval & Signature
Once negotiations are complete and both parties agree on terms, it’s time for approval. Contract management software makes routing for approval as easy as a few clicks. If rejected, edits can be made swiftly based on internal notes left within the editor, saving you effort and reducing your time to sale.
Once it’s time to sign, signatories can receive emails with a secure link where they can sign the contract electronically, upload their signature, even use cameras or video for extra verification and protection. Signed contracts are delivered to all parties and copies are stored on a secure server.
3. Compliance
Contracts often include precisely defined obligations which must be met, typically within a certain period of time. There may also be certain regulatory hurdles that must be documented or overcome. Tracking those obligations is essential to maintaining a positive working relationship between partners.
Good contract management software should integrate with project management tools, letting you track and fulfill obligations by delegating them to specific owners. Create action items as one-time or recurring tasks and set up automated reminders and alerts so that your team never misses a contractual obligation.
4. Extensions & Renewals
A successful transaction will often be renewed or extended. Once a contract nears expiration or all obligations have been met, renegotiation may begin. Whether the scope of work is different, costs have changed, or new roles have to be defined, it’s easy to make the necessary updates and complete the renewal in minutes! With just a few clicks, business can continue without interruption.
