Gone 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).
FinancialForce conducted a survey of HR professionals asking, “What are the major pain points you face today?” Out of the answers collected, the top two pain points were:
- Completing manual processes and spreadsheets
- Lack of systems integration
The solution to both of these pain points was technology adoption. New software with automation, recordkeeping and data analysis capabilities enables Human Resource Departments to streamline their workload and be much more organized.
When not implemented properly, it can be costly. Companies like GoGo Wireless, Safeway, BMO Harris Bank, and Zappos have all suffered the consequences of not following best practices with multi-million dollar lawsuits and costly litigation. So what are the next steps to properly implement these types of agreements?
Sign-up...NOW! We always want sign-ups to happen as soon as possible, because that means business. But does it mean legal business? If your customers are signing up online and aren’t being prompted to accept your legal terms before sign-up confirmation, it might not.
So we’ve already been over how a clickwrap API works, but why would you ever need one? Is that really a question? Clickwrap APIs are the best things ever, duh. No but really, what makes someone wake up in the morning and think, “Yes today I need a clickwrap API embedded into my website!” People don’t think that, which has proven to be a problem.
The complex world of software engineering is a fascinating one. The precision required to build out any feature for an app or website takes an army of developers and a lot of time. When it comes to wanting a clickable agreement on your website and automatic digital recordkeeping, that also has to be built. Don’t want to build it? There’s a clickwrap API for that.
Your online business is humming along, people are signing-up and buying stuff online, all while you assume that the business is protected by the legal terms and conditions that you are (ideally) presenting via some clickwrap agreement. Then POOF you get sued -- and not just any lawsuit -- but a dreaded class action lawsuit! You think "no problem, our terms and conditions have a class action waiver that requires arbitration."
If you're anything like us here at the PactSafe offices, you're probably spending a few minutes over lunch this week wandering around the streets outside your office trying to catch Pokemon. If you're not, well don't worry -- the guilt, shame, and embarassment of walking around as a grown adult playing an adaptation of a late-90s children's game wears off quickly. There's still plenty of time for you to catch up, reach Level 5, and head over to the nearest Pokemon Gym in your neighborhood to do battle.