What is a digital contract? How is its execution? Understand the subject!
The digital contract is an innovative and technological way of closing deals and deals. A digital transformation arrived at the bureaucratic universe of document management and, in this way, new and powerful tools revolutionized the way in which deals and agreements between parties are carried out. But its advantages don't stop there.
Digital contracts simplify contract management, since they eliminate a series of unnecessary steps until the document is signed and properly saved. Although it empowers a company to optimize its processes and achieve more and more results, many organizations are unaware of or ignore this type of contract.
We know that there are also a number of doubts regarding the legal validity of digital contracts or regarding the security of electronic signatures in documents. It's normal to have them. Although electronic signatures have existed for at least a decade, they are still very new in the Brazilian market. Not all sectors are easy to adhere to technological innovations.
For all entrepreneurs who do not know what a digital contract is or who have different questions about the subject, we have selected all the information on the topic in this publication. Read on and understand, once and for all, the growth potential that digital contracts can bring to your business.
After all, what is a digital contract and how does it work?
The purpose of a contract drafted and signed virtually is to bring more easiness in the life of those who are responsible for organizing these documents within the company. In this way, tasks such as controlling deadlines, monitoring versions, and collecting signatures are much simpler with electronic documents.
We can divide digital contracts into four different types:
- interpersonal;
- interactive;
- intersystemic;
- intelligent.
The contract interpersonal it is one of the most common because of its “informal” characteristic. Thus, through the records, it is understood that there is a will and good faith on the part of both parties to formulate and close deals, without the need for a physical signature.
In this scenario, there are three more different contract categories: the interactive, which depends on an individual on one side, and an automated service on the other. This is the type of procedure most used by companies when offering a virtual service. Therefore, with just one click, the consumer accepts the company's conditions (through websites or applications) and already formalizes an agreement between the parties. Want an example? It's the contract you signed when you signed up for your streaming service!
Another form of digital contracts and one of the most advantageous in the marketing world is the contract intersystemic. It works between two automated platforms: two virtual companies, for example, that carry out procedures together, can close a deal without traditional delays. The exchange of information, data, and documents can be easily and securely shared in the technological field.
Last but not least, there is the contract smart. This is the most modern type of contract, widely used in real estate and has a more independent and decentralized functional character. When applied to a system, its programming automatically evaluates the profile of the other parties to the contract, verifies their data and statements. In this context, it grants all the benefits provided for in the agreement, if those involved are compatible with your provided information!
Discover the advantages of the digital contract
The benefits of using the digital contract can be divided into three main topics:
- instantaneity;
- sustainability;
- economy.
With the adherence to electronic contracts, it is possible to list several points that have a positive impact on the corporate routine and on the world. Contributing to a technological era isn't just about having a profile telling about your company on social media. The culture that technology proposes transcends structures and bureaucracies that repel social evolution.
In this scenario, the need to reserve an environment only for file storage and contractual processes also does not compete with market trends. Instead, one opts for a cloud or HD capable of saving thousands of documents (which would be physical).
Therefore, it is also concluded that such tools they cut costs, without the real need to print and buy sheets, in addition to Time yield, profitability is an expected consequence. If a large percentage of companies abandon the custom of printed sheets, there is also great relevance in environmental conservation of the planet.
And its advantages don't stop there, electronic contracts form a worldwide communication web. Just like the evolution of technology, connecting and disseminating global accessibility, companies from anywhere can formalize a type of agreement. Assuming that a Brazilian publisher wants to negotiate with a writer from Russia: digital contracts are able to enable a solid partnership, even over a long distance.
Another advantage is the suppleness applied to your work. With this convenience, it becomes possible to carry out contractual procedures at any time, on any day. They are practically instantaneous, sustainable, and cost-effective. It is a reality shaped to fulfill the needs of a globalized world, its trends and competitiveness in the market.
Are digital, electronic and virtual contracts the same thing?
Despite having similar concepts, the three contract categories They are not the same. The differences between them are mainly technological. We summarized the characteristics of electronic and virtual contracts to facilitate illustration. Check it out:
What is an electronic contract?
Basically, an electronic contract is a contract created and signed through digital means. For example, your organization can draft a contract through Word, but instead of printing it, it's sent by email. In this way, the user signs the contract and sends the content back. Simple as that.
Electronic contracts emerged to remedy a recurring problem within the dynamics of an organization: the delay in the hiring process. Surely you know the feeling of being frustrated by having to repeatedly increase changes to a contract, especially corrections.
That's why the digital world opens doors to more efficient solutions, thus giving rise to electronic contracts.
What about the virtual contract, how does it work?
In a nutshell, we can say that the virtual contract is one that is electronically signed, that is, there is no need to exist in the physical world, such as a document whose platform is a paper validated with pen ink. While the electronic contract is identified with the need for a technological means of communication to finalize, the virtual contract only rules out the need for physical materials.
Both concepts are similar, as is the digital contract. In practice, virtual, electronic, and digital contracts can be viewed with the same concept, even with this small distinction. But remember: not every electronic contract is digital, but every digital contract is electronic.
Legal validity of digital contracts and electronic signatures
There is a provisional measure, MP 2,200-02 of 2001, which deals precisely with electronic signature regulation. It establishes the Brazilian Public Key Infrastructure (ICP-Brazil), whose purpose is to guarantee authenticity, integrity and validity juridical of documents in electronic form. In paragraph 2 of article 10 of this provisional measure, the electronic signature is specifically mentioned, as can be seen below:
Art. 10. For all legal purposes, the electronic documents referred to in this Provisional Measure are considered public or private documents.
§ 1 The statements contained in the electronic documents produced using the certification process provided by ICP-Brazil are presumed to be true in relation to the signatories, in accordance with art. 131 of Law No. 3,071, of January 1, 1916 — Civil Code.
§ 2 The provisions of this Provisional Measure do not prevent the use of other means of verifying the authorship and integrity of documents in electronic form, including those using certificates not issued by ICP-Brazil, provided that they are accepted by the parties as valid or accepted by the person to whom the document is opposed.
We talk more about electronic signatures in this publication:”Learn about the advantages of electronic signatures for your company”.
The security of digital contracts - how does it work?
As in any virtual situation, processes on the internet leave evidence for everyone involved. It is possible to rescue conversations with Backup, restore photos, files, and data with the synchronization of emails or accounts. For this same reason, when there is a negotiation, everything can be used in favor of transparency. Conversations, emails, and even calls that discuss professional conditions are data that legally support the contractual facets.
It is also worth noting that with the electronic signature, the entire procedure becomes more practical and secure: with the encryption, is there a extensive legal validity, as we mentioned in the previous topic. Thus, stimulating the usual frequency of technology in the corporate world becomes a revolutionary issue. In a world of immediate answers, economy and globalization, the technological era is a perfect ally for entrepreneurs!
All the details mentioned above are complacent with the range of Compliance disciplines, which combat illegal adulteration and corruption in the business sector.
The importance of a technology company
In addition to profitability and competitiveness in the market, integrity with the digital age promises enhance the experience on both sides: the consumer will have more comfort and mobility will be transformed in time. Currently, it is becoming less and less accepted that there is a need to travel to carry out bureaucratic procedures.
In addition, it is a natural tendency for large companies to take up more and more space precisely because of their investment in technology. To make this universe increasingly inherent to standard reality is to contribute to the mandatory presence of the Internet and its resources throughout the world.
Thus, with all the practicality that this era can provide, the Brazilian market can stand out positively. Dealing with large contractual and related demands, functions and tools can also monitor your entire administration in a much more cost-effective way. We talked more about this in our post about renewal of contracts and increase in fees.
Therefore, being connected is both a professional and a social issue. The world is still in motion, and great renovations are constantly appearing: it is necessary to challenge the conventional to drive great revolutions!
The digital contract has great potential to optimize your company's internal processes and, therefore, all organizations must consider its implementation, the same goes for electronic signatures. Take advantage and check out our publication with a Practical guide to electronic signatures.
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