How to Create, Manage and Track Your Legally Binding Contract

 In Blog

We know how important it is to properly create, manage and track your legally binding contract, and fortunately, we have comprised a foolproof step-by-step guide on how to do just that. Read on to learn how to impress your boss and clients with your notable contract skills.

Picture this: you have an incredibly important deal hanging in the balance, all the responsibility of tracking and managing the binding contract falls on your shoulders.

What do you do?

Well, you have two options.

One, you can stick to the basics and stunt your contracts growth and potential. Similar to a seedling being neglected and kept in the dark, no matter how much work and time you invest into making and managing your legally binding contract, it will never be able to grow. We know how dedicated you are to your work, so why work harder for less payoff? Not only is this tedious and time-consuming, but it’s also risky.

Or two, you can break through the old crutch of habit and reinvent the way you manage and track your legally binding contract. This industry is evolving and with the rapid technological advancements that we are currently experiencing, it’s hard not to believe that a completely digital future is just around the corner (check out our recent post on “The Evolution and Future of Document Signing”).

So, like Yoda from Star Wars once said, “once you start down the dark path, forever will it dominate your destiny, consume you it will.” Similarly, missing the window for automating your sales operations, could mean a long and tedious future.

Allow yourself the opportunity to expand your skillset, optimize your operational and financial performance, all while reducing financial risk. You may be surprised at just how easy this is.

 

Before you start drafting your legally binding contract  


1. Work with the right people

You’re only as strong as your weakest link, so be sure your team comprises of people who are right for the job, match your company’s culture and are on the same page with your company’s mission.

According to Glassdoor’s, Top HR Statistics:

“Employees who understand their contribution to the company’s mission are more likely to bring a positive attitude and commitment to the workplace, which trickles down to company performance at every level.”

So, building a team with passionate individuals, will lead to getting more contacts signed and ultimately leads to your team’s success.


2. Do your homework

This goes without saying, but in order for the seedling to grow strong and sturdy roots, you have to put in the work.

Research the business you are creating the legally binding contract for and the legal background of the business relationship you’re entering. Systematic planning and methodology are what’s required to be successful.

Conduct interviews with the right people and collect any needed information on the present situation, as well as any decisions the outside parties’ plan on making in the future.

A couple of other important points to research are:

Who are you contracting? What steps need to be taken for the company/business to comply with requirements? What are their specific policies and procedures regarding decision-making? Does a decision have to be approved by multiple people? If so, what order? In short, familiarize yourself with the foundation and culture of that organization.

You can also use resources such as the Financial Times, Forrester Research and  Economist Intelligence Unit for general industry and market research.

 

After the research   


1. Get started on the paperwork

Creating a successful, legally binding contract can be broken into 3 main segments: Drafting, Reviewing and Finalizing.

Drafting

Ask your client to prepare and outline before you draft your contract.

According to RocketLawyer, asking your client to prepare an outline of the agreement as they understand it, not only provides you with a blueprint of the points that are important to them. But also, serves as a good starting point for discussing other critical issues that that they might not have thought of and should be addressed.

If this is not possible, be sure to include all of the important points that you made note of during your initial meetings with your client.

Reviewing

Once you have created your draft based on your client’s outline, begin reviewing the contract to make sure it is precise and focussed. Filter sentences to their basic points and substitute specific sentences with general ones to avoid future confusion.

FindLaw, a website that let’s you find information about legal topics, says that all valid, legally binding contracts have to follow some basic rules, namely, intent to make a contract; a lawful subject matter; an offer made by one party; acceptance of the offer by the other party; and an exchange of something of value.

Finalizing

To ensure that all goes well and you close your deal, prepare to work fast and make the signing experience as easy and pleasant as possible for your client.  
Fortunately, this can be done easily through Electronic Signatures.

Electronic Signatures solutions, like Signority, allow you to upload and securely send documents for eSignatures with a few clicks. This allows for a seamless experience for your client, ultimately avoiding wastage of time and money.


2. Get Tracking 

Tracking your online legally binding contract sent for signature is critical.  Tracking lets you know when the document has been viewed by the required party or if it has been forwarded. There are a few ways to track your contract:

Contract Management Systems

Contract management systems allow you to gain control of most aspects of your contract, from allowing you to access critical information and tracking, to generating reports when you need them.

eSignature platforms

Most eSignature platforms (including Signority) provide you with a tracking functionality, that lets you view crucial information, such as:  when a contract is viewed and how many times it was opened in real-time.

You can set up reminders and notification for your clients, allowing you to get your deals closed faster.

 

2. Get Paid 

After celebrating your closed deal — hopefully, with your awesome team — now comes the next challenge:

“Payments”.

Life is busy, and keeping track of all the nitty-gritty payment details of your contract can be tedious. We all have a lot on our plates and automating the payment processes can save you a time and hours of confusion.

Online payment and transaction apps such as PayPal and Stripe (we swear by Stripe at Signority), help your clients stay punctual with their payments — with minimal effort from both sides.

Besides making it easy for your clients, these platforms allow you to sync your data with most or all your management systems, to easily generate financial reports and provide you with important data for your analysis.

As the old English proverb goes: “work smarter, not harder”.

Follow these foolproof steps and guarantee that all of your hard work will reap the rewards you deserve. That little seedling will grow into a sturdy and resistant tree that can withstand any difficult contract building/management process.

Also, check out our recent article on “5 Habits of Highly Effective Insurance Brokers”.

Looking to take your business paperless? Sign-up now and get free access to Signority’s Business Plan for 14-days.

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