An electronic contract, often known as an eContract, is a legal document that is written and signed online.
It's essentially an electronic counterpart of a paper contract. eContracts, like traditional contracts, are agreements signed by two parties.
They are legally binding and enforceable papers that are commonly used in the areas of employment, commerce, services, and tenancy.
In a traditional paper contract, one party drafts an offer, which the other party reviews.
If both parties accept the terms and conditions mentioned in this initial offer, they will each sign the paper, making it a legally binding agreement.
How to Create EContracts?
An eContract can be created in a variety of ways by a company or a person. Specialized software, e-mail, word processing, and a variety of other ways may be used.
Contract management software is most typically used by businesses. So, what exactly does contract management software do?
It's a comprehensive solution that lets them generate and manage all of their contracts and contract-related data in one location.
They all employ similar ways to construct eContracts, regardless of the provider they use. A contract request from a company employee usually kicks off the procedure.
Why Use an EContract?
When the two parties do not meet face-to-face on a regular basis, eContracts are used.
Because of its low cost, short response time, environmentally friendly nature, and better security, many individuals and corporations have adopted digital communications and contracts.
Many organizations used to rely on contract lawyers to draft all of their contracts.
For a major corporation, this is an expensive operation.
It is simply more cost-effective today, with pre-approved templates and contract management software services to handle contract creation.
How Do I Sign a EContract?
One of the most often asked topics concerning eContracts is how to sign them digitally.
When an Econtract is available for review, the email usually sends recipients to an application that allows them to create digital signatures.
There are many options for signing depending on the program.
Some programs will require you to provide your social security number, while others will merely want you to check a box.
Advanced software may even allow for the use of a digital signature.
To do so, simply type your name and select a signature from a selection that appears to be hand-signed.
While you won't locate your exact signature, you should be able to find one that looks similar to how you'd sign your name on paper.
Tips for eContracts
eContracts, like traditional paper contracts, follow the same principles and remedies as traditional contract law.
While a digital contract may appear to be less formal than one delivered in person, it still requires the same amount of thought.
You should always double-check any deal to make sure you know exactly what you're signing.
If something doesn't seem quite right, don't sign anything until you've spoken with a lawyer or the company directly about your concerns.
If this assuages your fears, you may proceed to sign the eContract. If not, submit a request for eContract changes.
You should only sign the contract when it truly reflects an arrangement you are happy with.
After that, make sure to print a copy and keep it in your files.
It can be tough to locate a contract kept on a digital platform you don't use very often if you need to retrieve it later.