Contract Execution Faux Pax: The Horror Stories You’re Repeating

Jun 21, 2017 7:00:00 AM

Contract Execution Horror StoriesGone are the days of mailing and remailing contracts, and we could not be more thrilled. Written contracts can often be time-consuming and complex, and honestly just a big pain. Luckily, eSignatures have come to save the day! Contracts don’t necessarily need the typical ink-to-paper form of signing anymore, yet some companies have not taken advantage of all that eSignatures and clickwraps have to offer. In this blog we will outline some contract-signing practices that have yet to completely fall to the wayside (but hopefully will soon).

1. Mailing Contracts

Ah yes, the most time-consuming of them all makes the top of our list. Have you ever been through the struggle that is signing a lease for a new apartment or house in a different city? This usually involves jumping through a series of hoops such as collecting the necessary forms from all of your future roommates and making sure you don’t miss a single dotted line. Then, as if that wasn’t stressful enough, you have to go to the post office to mail the contracts (and who enjoys waiting in line there?). I just recently signed a lease for a new apartment with my two roommates, and witnessed firsthand how unnecessarily difficult this process can be. 

The Solution:

Although some landlords have gone digital, some still feel a lot of trepidation when it comes to the legality of online agreements. However, in the United States there are a number of laws that make eSignatures legally binding. Not only do they speed up the signing process, eSignatures also make it easier for both parties to track signature records and manage versions of the documents.

2. Faxing Contracts

This process may be a little easier than mailing, but that doesn’t make it much better. There is still a lot of waste that results from faxing contracts - in the form of both time and money. Although sending and signing contracts via fax cuts out the middleman, you still have to go through the hassle of printing out the contract, signing it, scanning it back in, and then emailing the signed copy. Ain’t nobody got time for that. 

The Solution:

Now imagine this: What if you could accept contracts via SMS? With PactSafe, this is a reality. We recently unveiled SMS contract execution as a new feature of our platform. Sending and signing contracts on-the-go with text-to-execute contracts fulfills the same standards that make clickwrap agreements fully enforceable and binding.

3. Unenforceable Contracts

Some businesses have attempted a digital transformation, but have fallen short. A great example of this would be the lawsuits that DraftKings and FanDuel faced back in 2015 as a result of their lacking Terms of Service. This is a perfect example of how drafting online terms, and having them executed properly are both equally important. We love that businesses are trying to transform to keep up with the right-now economy, but we don't love that they aren't doing it in a legally enforceable way. 

The Solution:

Whether online, in-apps, or through day-to-day business transactions, there are numerous ways to use clickwraps for business contracts. Clickwraps can function on your website when it comes to enforcing your online terms, but also serve as a contracting tool and the easiest way to sign. Another advantage of clickwrap agreements is triggered recordkeeping, so you can rest easy knowing that your contracts are legally enforceable. 

These three contract execution scenarios are basically horror stories, considering how important a streamlined process is to us and other businesses in general. A contract should be a living, breathing, connected cross-section of data that drives action in your business—it shouldn’t weigh you down with overhead or cost like what you typically see in contract management. The processes outlined in this blog only make it more apparent that the connected contract is the future of contract management and eSignature

 


About PactSafe: 

PactSafe is the only contract execution platform that automatically manages all of your contract data and enables custom processes that deliver seamless execution for your customers and internal teams to ensure confidence in your end-to-end contract experience.

 

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Emma MacAnally

Written by Emma MacAnally