Electronic contracts and their importance

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. In this article, we're going to give you an overview of everything you need to know, check it out!

What is the concept of 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, send it by e-mail. In this way, the user signs the contract and sends the content back. Simple as that.

In fact, we sign electronic contracts frequently. How? Just remember any program or app that requires the “I agree” button, accompanied by a series of license terms.

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How is the electronic contract secured?

With a huge data network flowing at breakneck speed, you might be wondering if electronic contracts are really a secure method.

The first point that we must analyze is that digital signatures rely on encrypted technology. That is, the systems shuffle the information and then unscramble it.

In addition, when using this technology, only authorized persons have access to the document.

It is worth mentioning that the digital signature also undergoes a strict verification process, better known as a digital certificate. In this way, a responsible body guarantees that the signature is authentic.

What is the importance of the electronic contract?

The electronic contract provides advantages for various areas of the company, so its importance is reflected in various sectors.

Therefore, check out the main topics that can help your business:

Digital processes save time

If you want to invest in more agility, the electronic contract is a great path.

Reflect: how much time do you spend, on average, to complete a sales negotiation proposal? Take into consideration the entire process: from receipt to signature.

In an increasingly dynamic world, this means that the contract may become stagnant.

However, by providing an instant option that can be easily accessed from a smartphone, notebook, or tablet, you optimize time and, consequently, money.

Electronic contracts reduce operating costs

Electronic contracts dispense with the need for traditional materials, such as:

• Paper;
• Printers;
• Inks for printing;
• Printer maintenance and repairs;
• Shipping;

And that's just the beginning. Therefore, when purchasing the electronic contract, all these expenses disappear. In addition, your organization begins to collaborate even more with the environment.

Electronic contracts generate more revenue

Through the traditional method, the contract can cross a series of obstacles until it is effectively processed successfully.

However, electronic contracts help generate more revenue for the organization, precisely by facilitating and streamlining all contracting processes.

After all, electronic contracts make it possible to sign contracts from anywhere, at any time. In addition, any modification can be easily edited.

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References:

https://blog.pandadoc.com/difference-between-electronic-contracts-and-traditional-contracts/

https://www.upcounsel.com/e-contracts

https://www.techehow.com/5-advantages-going-digital-business-contracts/