In simple words, E-contracts are electronic variants of paper-based contracts. Furthermore, It should be noted that e-contracts have the exact basic requirements as binding contracts that are:
1. Offer and acceptance
2. Free consent
All these requirements are compulsory for both traditional paper contracts as well as for E-contracts. But there is one prominent difference between the two. E-contracts are accepted through electronic signature or other electronic modes of acceptance.
E-Contracts have various benefits for all types of businesses, such as:
Significant reduction in paperwork and documentation costs: Digital contracting or electronic contracts significantly reduce paperwork and documentation costs by up to 90% by digitizing the contract creation. Besides, many legally valid templates also reduce the documentation process and execution time.
Reduced turnaround time on document execution: Electronic signatures have automated and digitized document execution workflows by enabling you to sign the documents online. This curtails the turnaround times by up to 80% and ensures that contract execution remains free of errors and much faster.
Better work efficiency: Automating contract workflows is a great way to eliminate all pain points. The signed documents will be sent automatically by email or fax, so your business can stay efficient and on schedule.
Fewer mistakes and errors in the documentation: Electronic contracting and online contract signing have removed manual errors and enhanced productivity by up to 20%. This way, you can process contracts quickly with a few clicks and submit multiple contracts all at once or one by one.
No paperwork & manual documentation: Around 90% of business information remains on paper, affecting work efficiency and productivity. Similarly, productivity is lost in these traditional and manual documentation processes. Electronic contracts eliminate paperwork by automating contracts and saving you time and money.
In the United States, electronic signatures are valid and reliable forms of authentication as those created by hand. They have been granted legal status in all 50 states under local statutes.
Yes, they should. Digital documentation and electronic contracts save businesses up to 120 hours per employee, and they also reduce paper and documentation costs by up to 90%. Imagine if you could get your contracts signed in less than 3 minutes. You would save hours, days, or even weeks on that process.
That's why businesses of all sizes need to start using e-signatures and digital signatures. They make life easier by speeding things up and ensuring accuracy, which is key when dealing with large amounts.
Yes, they are safe and secure. E-contracts are executed through electronic signatures, which are safe, reliable, and secure mainly because of the hash functions, which assure the uniqueness of electronic signatures.
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