Often, contracts are needed to facilitate the day-to-day running of a business. Keeping track of these essential documents can also be cumbersome; sometimes, meeting in person can be equally challenging. More people are using a contract online versus meeting in person to handle these everyday needs, making it important to know how to execute this process correctly.
Making legal contacts online has been simplified by digital platforms that use e-signature apps. These tools can streamline your contract process, ensuring proper acceptance and legal compliance.
This article outlines how to legally make contract online and the most common types businesses use.
Table of Contents
How Can a Contract Online Be Done Legally?
The most efficient way to make an online contract is to use a system designed to facilitate the creation and execution of these contracts through click-to-accept agreements. Programs facilitating legal online contracts will have an easy-to-use, step-by-step process that employees, contractors, and vendors can use from their remote locations.
This process will usually include the following:
Confirming Legitimacy and Age
Both parties will verify their identities and legal ages before entering into a contract. This usually involves uploading files confirming these pieces of information, such as a driver’s license for an individual or a copy of a business license for an entity.
Drafting Terms and Understanding Signing Requirements
It’s crucial to disclose all relevant information, like clearly stating the contract’s terms, including both party’s names, to avoid legal disputes. Each party will need to be authorized to sign and will also need to understand what they are signing.
Collecting Signatures Electronically
The Electronic Signatures in Global and National Commerce Act, also known as the E-Sign Act, validates electronic signatures and records as long as both parties consent to this method. Courts consider click-to-accept agreements legally enforceable because they require users to be active in the process, like checking a box indicating an agreement to the terms. Providing adequate notice of the contractual terms and obtaining user assent to form an enforceable contract is vital.
What Types of Legal Contracts Can Be Done Online?
The most common legal agreements done online are those commonly used for high-volume, non-negotiated contracts like NDAs and liability waivers. Here’s a list of the most common contracts processed online.
Terms and Conditions
Terms and Conditions contracts are fundamental for online services like e-commerce sites and apps, where users must agree to the service terms before using the product or service.
Non-Disclosure Agreements (NDAs)
Essential for protecting sensitive information, NDAs are sometimes included in scenarios like candidate interviews, sales demos, and partnership discussions.
Liability Waiver Contracts
Often used by businesses with physical activities, liability waivers can be executed to limit legal claims from participants.
Service Provider Agreements
These contracts outline the terms of service between a provider and a client, which can include the scope of work, billing schedules, and deliverables.
Contractor and Employment Contracts
While requiring more personalization, particular standardized employment and contractor documents, and onboarding paperwork can also be executed as a contract online.
In Conclusion
Creating a contract online has become vital in the digital age, simplifying operations and reducing the need for in-person negotiations. This innovation saves time and maintains legal integrity and compliance through e-signature technology. As digital platforms continue to evolve, the prevalence of crafting and executing these agreements will likely become standard business practices worldwide.
