Why one template will never be enough
Why you'll need at least 3 documents per contract
Despite the natural association of contracts with lawyers, lawyers are not the only individuals involved in the contracting process. Assistants, witnesses, stakeholders and supporting signatories are some of the people who will interact with a contract throughout its lifecycle. However, much of that interaction will happen under the supervision of their lawyers, until the contract is finalised and signed.
This supervision is necessary to ensure that the contract’s terms, and their consequent legal implications, are acceptable and compliant. For example, liability requirements for one organisation on the contracting table might differ from those of the party at the other side of the table, commonly leading to a renegotiation of the liability clauses. The process of reaching mutually acceptable terms and the appropriate wording of these terms can take time, especially for low value contracts which are not the top priority for the organisation.
Non-disclosure agreements, new partnership or sales agreements are often a low priority for organisations. Increasing legal capacity to accelerate the processing time of these low value agreements isn’t economical in the short term. However, in the long term, business relationships might not be explored and opportunities may be lost due to the hurdle of processing and negotiating contracts.
Low value contracts should be simplified so that the terms will most likely be mutually acceptable to all parties. This means that little to no negotiation should be required for these agreements. A delegation framework which lawyers can trust should then be developed to enable their contracting colleagues to create and negotiate the terms of their agreements without their permanent supervision. This framework should be simple enough for non-lawyers and offer reasonable flexibility within pre-approved bounds to minimise error and save time.
Legislate is a software platform which provides a suite of robust and fair contracts which can easily be created by non-lawyers. Once the contract is configured on Legislate, parties can be invited to accept and sign on the platform. This streamlined process means that contracts are signed faster and business opportunities pursued sooner. Distinctively, Legislate is built on a knowledge graph which unlocks contract data and insights which previously would have been trapped in a word or pdf document.
The opinions on this page are for general information purposes only and do not constitute legal advice on which you should rely.
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