Online contracts can easily become lost if not properly organized, managed, and maintained. The best solution for this is to use a cloud-based contract management solution that acts as a centralized database for contracts. And provides all the necessary features to manage a contract through its lifecycle.
Managing online contracts should be done in an efficient, cost-effective, and sustainable way. From the simplest to the more complex online contracts, storing and managing them on a cloud-based platform is the ideal solution for any organization of any size.
Even small businesses can benefit from cloud-based contract management software. It frees up office space, reduces risks and human error, as well as makes handling multiple contracts straightforward and scalable.
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The most common online contracts best handled in cloud-based software
Five of the most common online contracts that are best handled in the cloud are:
1. General business contracts
A general business contract is one that relates to topics such as stakeholder protection and business structure. General business contracts come in many different forms, such as:
- Stock purchase agreements: these contract agreements are for selling a certain amount of stock to an individual.
- Franchise agreements:a franchise agreement is an outline of a relationship between a franchisor and franchisee. These include details like advertising, support, and brand.
- Licensing contracts: this type of contract provides others the right to use your intellectual property in exchange for monetary compensation
- Advertising agency agreements:like many agency agreements, these agreements setup what the scope of duties of the agency are. The scope also includes the length of time for the work to be completed in, and what the payment for the work will be.
A sales-related contract is one which deals with goods, property, and services to be bought and sold. The other part of these contracts is the legal parameters that relate to any transferring of titles, if necessary. Some of the important terms which are related to sales contracts include:
- Purchase order:a purchase order is a legally binding contract. It commits a business owner to purchase items at an agreed price. And it also specifies the delivery date and payment terms.
- Agreement for the sale of goods:any sale which can be confirmed with a bill of sale. Usually after the transaction has been completed.
These are just a few examples of sales-related contracts.
There are a variety of employment-related contracts. Some of these are:
- Reciprocal nondisclosure agreements
- Consulting agreements
- Confidentiality agreements
- Sales representative agreements
- Distributor agreements.
These contracts set terms for people’s employment. The details are laid out and can include everything from pay, bonuses, and compensations.
4. Cost plus contracts
A cost plus contract include the actual cost, as well as the purchase and any other expenses that are incurred from construction work. Before negotiations, an exact amount of expenses must be added. This amount representsa certain percent of the labor and material costs.
5. Time and material contracts
The “time and material” contract is used when:
- The contractor and owner are compatible with the tariff per day or hour. This also includes any potential additional costs.
- The quantity and capacity of materials and time is not determined. However, this can be risky.
These are 5 common online contracts. The list is by no means comprehensive. Each of these contracts are best handled on a cloud-based contract management platform.
Why you want to centralize your contract management in one place
Handling all your online contracts in one centralized cloud-based platform is the best way to keep track many different types of onlinecontracts. With the right contract management software, centralizing your contractshelps to ensure all risks are minimized, deliverables are completed on time, and nothing is missed.
If you are looking for a contract management software that can help you all your online contracts, ContraxAware’s contract management software has everything you need. With 99 features, and options for businesses of all sizes—ContraxAware’s got your covered.
For more information, please contact us today.
Online contract management FAQs
Below are some answers to the more frequently asked questions about online contract management. If your answer isn’t in the blog post above, or answered below, please feel free to contact us today.
Why manage contracts online?
For those contracts that can be handled online, it is far more cost-effective, secure, efficient, and faster to manage contracts online. Whether it be a general business contract, a sales-related, or an employee-related contract.
Having them all in a centralized database makes accessing them convenient. You only have to go to one place and you can find all your contracts. This allows for greater acquisition of data which will inform your current and future contract negotiations. Whether that be with staff, or with vendors, suppliers or clients.
Managing your contracts online provides you with greater control over a contract’s lifecycle management.
What are the advantages of managing contracts on a cloud-based platform?
A cloud-based platform is more versatile, easier to upgrade and scale, as well as being more convenient for all departments involved. For example: instead of important documents and contracts stored in filing cabinets, being passed around and misplaced, you have it all in a centralized database.
it’s easier to scale because you don’t need to go out and buy a new filing cabinet, or wind up with boxes perched precariously around a room. Rather, you simply get more cloud storage. And you still only need your laptop to access all the contracts your organization is handling.
Cloud-based contract management is more convenient because there’s no waiting for one department to send the contract to another, and so on. Being online means each department can work on contracts in real time without having to wait.
Why is online contract management necessary?
Online contract management is necessary for modern contract management. It dispenses with the need of physical storage space, the slowness of the postal service, and significantly reduces human error through automation.
It is necessary because it makes growth and expansion easier than when contracts are managed manually.
