It might seem surprising but a small business will create hundreds of legal documents each year, even when they don’t have permanent legal counsel. The majority of these documents will be variations of the same templates such as for example employment contracts or privacy notices. In this article we discuss 4 areas where small businesses can save time and costs on their high volume, low value contracts.
1. Contract templates for small businesses
Generating a contract from a template is the riskiest part of the contracting process, especially if you are manually editing a word or pdf version of the contract template. Typos can occur, sections can be accidentally removed and templates can contain out-of-date clauses if they are not regularly updated. Contract clauses are highly interconnected which also means that a change can have an impact further down the agreement which can cause unwanted knock on effects. Sourcing a new contract template every year is not economical and doesn’t solve the contract tailoring problem. Small businesses can save on average 3 hours per contract by using a platform like Legislate for legal document automation. Moreover, Legislate’s templates are up-to-date and lawyer reviewed which means that small businesses effectively save on template renewal costs. This is especially true for employment contract templates which are often changed due to updates in the law which are quite frequent. To find out how Legislate works and starting creating employment agreements, sign up today.
2. Workflow automation
Creating and executing a contract takes on average 7 steps and more if more than 2 parties are involved. Not using document automation creates unnecessary friction which can cause errors and delay signatures. Errors can lead to time being wasted on restarting the execution process and delaying signatures increases the chances of parties changing their mind about the agreement. Legislate minimises the cost of an error by allowing users to make potential amendments to the terms of their agreement without needing to restart the whole process. Contract negotiations are centralised in the activity tab which means that all the involved parties can manage their contract conversations from the same place.
3. Offer a professional experience to the other side
Contracts are one of the first impressions a party from the side will have of your business which means that it is important that the contract you provide is complete and professional. Using a platform like Legislate allows you to offer a professional experience to the parties from the other side both in terms of the contract itself and the contracting experience. Legislate helps everyone avoid redlines and endless email threads by using neutral contract language and fair terms which can easily be configured from the Legislate terms tab. Legislate offers business document automation which helps you save time whilst offering a great experience to everyone involved in the contracting process.
4. Data management
Contracts contain valuable information which is largely untapped. Contract renewal events and monetary values can inform the strategy of a business if they are aggregated correctly. Pdf contracts are not machine readable and therefore require a human in the loop to manually extract its values. Making contracts machine readable is the first step for unlocking smart contracts. Legislate’s contracts are built on knowledge graph technology which means that the elements of the contract are natively machine readable. Moreover, the flexibility of the knowledge graph means that it can automatically compute the formulas and calculations which would typically be performed in a spreadsheet which means that businesses who use Legislate no longer need them.
Contract automation is no longer reserved to large companies with legal documents. Businesses of any size can now automate their high volume contracts and make sense of their contract data with platforms like Legislate. Legislate is the only platform to offer machine readable contracts that can be tailored by the unlawyered. Read our tutorials to find out how to create non-disclosure agreements, employment contracts and consultancy agreements with Legislate. Alternatively, book an introductory call with our team.
The opinions on this page are for general information purposes only and do not constitute legal advice on which you should rely.