Contracts are the foundations of not just legal but every operational enterprise. Creation and execution of contracts is a daily course specifically for the legal fraternity. Whether you are creating a simple contract or drafting a really complex one, the language will sooner or later get on your nerves.
The legal language has always been a pain point for making a complete contract. Moreover, the structure of a legal document is such that, even trained lawyers tend to miss out on minor, yet critical details.
Process gets even more complicated when you have to add in all the details of the contract at the exact positions to construct an executable contract. To make this neck breaking process a little bearable, many platforms are now offering customizable templates that take off the burden of building a contract from scratch
Digital contracts are now replacing legacy contracts at a breakneck speed. When you decide to implement a CLM, here are a few benefits that will transform the way you do contracts.
The Problem: Drafting a contract from ground up is an extremely time-consuming process. The complexity of the contracting language makes it even more tedious.
The Solution: Having ready and customizable contract templates is a huge lifesaver for all lawyers. An orderly CLM will have all your standard templates in a software format, making them more easily editable and quicker to access. With an on-the-go contract template aiding you in work, your legal team can focus more on the actual legal tasks at hand. Contracts would be reviewed faster and could be checked for any errors. This will ensure that the legal team spends minimal amount of time on the administrative aspects of drafting a contract.
The Problem: Terms of the legal contracts and agreements are different on every level on every single instance. Depending upon the territorial jurisdictions and the applicable laws, different legal terms take on a different meaning. While drafting a contract for a specific reason or area, replicating the same for another reason and area may mess things up owing to local language, geography or local laws. You will also frequently need to change critical details like-party names, addresses, terms of agreement, financial amounts, so on so forth.
The Solution: With so many revisions happening on even the smallest of the instances where revision is required, having easily customizable contract templates becomes necessary. With a streamlined contracting tool revisions become easy and on a single platform where every revision can be reviewed using redlining. This in turn saves a lot of time that was previously getting entrapped in doing mundane tasks.
The Problem: The language of a contract, it's formatting, the inclusion of standard clauses, etc varies according to the person who drafts the contract manually. There is a high chance of deviations from the set business standards. Such anomalies can lead to a hampered image for the firm.
The Solution: The language of a contract, it's formatting, the inclusion of standard clauses, etc varies according to the person who drafts the contract manually. There is a high chance of deviations from the set business standards. Such anomalies can lead to a hampered image for the firm.
|Automated Templates||Manual Drafting|
|Faster and accurate creation of a contract||Turtle-paced drafting with room for human error|
|Easy and streamlined revision process in a single version||Time consuming and multiple revision leading to the creation of multiple versions|
|Maintained consistency for all contracts||Diversion from the set standard due to human intervention|
|Easy to keep track using redlining||Difficult to track all the changes manually|
The Problem: A growing and expanding organization will have a constantly changing and updating set of rules and regulations. But drafting a contract with these updates on every single instance that they happen, is almost a humanly impossible task.
The Solution: Having contract drafting software makes it effortless for the legal teams and the management to speedily updates the new changes. In addition to these, the templates also help in drafting a standard format for all the rules right from the start with all external as well as internal parties involved.
Implementing contract drafting software, is a sure way to empower your legal team with the latest technology. Having a progressive CLM that enables a rapid contract drafting process, is the best way your legal department can add to the core business operations. We hope this article was helpful in enlightening you about the pros of having automated contract templates.