How to Create and Have Your Client Digitally Sign a Simple Contract

In today's digital age, creating and managing contracts has become more accessible and streamlined. Whether you are a freelancer, a small business owner, or self-employed, understanding the process of drafting a simple contract and having it signed electronically is crucial. This guide will walk you through the steps to create a basic contract and facilitate its digital signing, ensuring compliance and efficiency.

1. Understanding the Importance of Using Contract Management Software

When it comes to managing and creating contracts, leveraging contract management software can significantly streamline the process. These platforms are designed to ensure security, accessibility, and ease of use. For non-legal professionals, software like Revnue provides a user-friendly interface that allows you to create, author, and edit contracts efficiently. Everyone involved in the contract has real-time access, making it easy to collaborate, edit, and approve the document.

2. Warning: Unauthorized Practice of Law

It is important to acknowledge that if you are the owner of or an employee of a business entity such as an LLC, Corporation, or any other entity, drafting your own contract without an active license to practice law is considered unauthorized practice of law. A party to an agreement might be allowed to draft a contract without a lawyer, but any legal entity acting on its behalf would be subject to the licensing requirement. If you are not a licensed attorney and are representing a business entity, it is wise to consult with a legal professional.

3. Steps to Create a Simple Contract

A contract is essentially a formal written document that outlines the agreements and obligations between the parties involved. Here’s how to create one:

3.1 Identifying the Parties and Agreements

Start by identifying the parties involved. You can use names, titles, or a subject identifier that all parties agree upon. For simplicity, you might use: Hereafter referred to as “Buyer”.

3.2 Detailing the Agreement

Describe the agreement in detail to avoid any future disputes. Include all relevant information, such as the scope of work, payment terms, deadlines, and any other specific conditions. The more detailed your contract, the less room there will be for misunderstandings.

3.3 Including a Mediation Clause

Adding a mediation clause is a good practice. This is a short paragraph that states any disputes will be resolved through mediation to attempt settlement before proceeding to arbitration or litigation. This clause helps in conflict resolution before the matter escalates.

3.4 Adding Signatures

To conclude the contract, include a line for both parties to sign. Make sure you follow any additional legal requirements for signing, such as notarization if needed.

4. Digital Signing: Simplifying the Process

For modern businesses, digital signatures have become the norm, offering convenience and security:

4.1 Using Digital Signature Services

Utilize digital signature services like DocuSign or SignNow. These platforms allow you to upload Word or PDF documents and send them for signing. The recipient can sign via the keyboard, their tablet, or phone with a stylus or finger. Once signed, the document is automatically emailed to you, making the entire process seamless and secure.

5. Best Practices and Considerations

When creating and signing contracts digitally:

5.1 Ensure Legitimacy

Always verify that the party you are contracting with is legitimate and has the authority to enter into agreements. Check their business registration and any relevant legal documents.

5.2 Follow Legal Requirements

Be aware of any specific legal requirements that may apply to the type of contract you are creating. Some states or countries have specific laws that govern certain types of contracts.

5.3 Maintain Documentation

Keep a copy of all signed contracts for your records. Maintain clear and organized files to ensure easy access and compliance with any legal or auditing requirements.

In conclusion, creating and digitally signing a simple contract is a straightforward process when you follow the right steps. Whether you are just starting out or managing multiple contracts, using the right tools and understanding the legal implications can save you time and ensure that your documents are legally binding and secure.