What is Digital Contract and 5 Powerful Reasons Why You Need One

What-is-digital-contract-and-why-you-should-have-one

What-is-digital-contract-and-why-you-should-have-one

In doing your business, are you protecting yourself from any liability? Does your company have any exit strategies in case something happens to you? 

Asking questions like these is important, but it may also make you feel uneasy. So what is digital contract? Well, it serves many functions within your company, and it’s a crucial document to have. It defines the business relationship you have with your prospects and clients.

So in this article, we will walk you through what is digital contract, why you need a digital contract signing app with many free digital contract templates, and how to make a digital contract using Fill’s online forms.

Table of Contents

What is Digital Contract?

A digital contract or electronic contract is a document that binds you and your client or any third party. It is a document that draws the boundaries between you and that third party. Apart from that, it contains specific information on where you need to both work together.

Although a digital contract is made across one’s devices, it is still considered a formal declaration that binds two people together. Although it has been debated whether they are legally binding, a digital contract is still as binding as a printed one.

Can You Make a Digital Contract?

Yes, so you don’t need to pay someone just to make electronic contract for you. After all, why would you do that when there are free services online when all you need to do is fill in some information. With Fill, you only need to do a few clicks to make one.

Here’s how to create a digital contract example with Fill:

  • Step 1. Click the + Start Now button and click on the You & Others sign. For an e contract PDF, you have to choose this option so that you can notify both parties that you both signed. If you want to know more about the features of the other options, read here.

What is digital contract and who do you need to sign them?

  • Step 2. If you have a ready-made digital contract, simply import the files here. If not, then create one using this digital contract software. It has a vast template gallery you can choose files from. 

What is digital contract and which one would you use?

  • Step 3. Input the details of the signers here, including yourself. In this part, you can set until when the other party can sign the signature on their end. You can also choose to edit the invitation message, send a video invite, and CC others.

What is digital contract and who are signing them?

  • Step 4. After that, you can edit the fields where you and others can sign. You can add fillable fields, and you can also choose to remove them. In this part, you can also choose to add more signers by clicking Add Signer.

Edit what is written in the digital contract accordingly.

  • Step 5. Once you click Sign, you will be directed to the page where you can click on the fields you need to fill out. With fill, you can see how many fields are left to fill out and how many seconds or minutes it will take you to complete them. It also has smart document filling.

What is digital contract and what are the areas that need to be filled out?

  • Step 6. After you fill out your assigned fields, simply click the Done button so it will automatically send to the other parties.

And that’s about it! You don’t have to worry because Fill also has large storage, so you don’t have to look for manual contract storage for your company or team. 

Is a Digital Contract Legally Binding?

For quite a while, the validity of digital contracts has been debated. However, various ways make your digital contract legally binding. First of all, you need to make your digital signature lawfully binding first. 

While digital signatures can be legally binding, digital contracts work differently. Since it spares companies and teams from possible liabilities, a lot of things must be done to make sure it is legally binding and valid. Such that, there are practices for implementing digital transformation in legal contracts.

Why You Should Get a Digital Contract App

The key reason why every business should have a digital contract is to protect your business and customers from fraud or misunderstandings that can arise during a deal.

More Flexible

In a work-from-home setup, it is more favorable for employees and clients to sign a digital contract than a physical one. Firstly, a printed contract may just end up piling on their table. 

And secondly, signing a digital contract allows them to choose between scanning their written signature or just choosing from different fonts like what’s available at Fill.

Easily accessible

What is digital contract for? Having one allows you to fetch documents much faster. Compared to a traditional contract where you have to look for papers in drawers, digital contracts can be stored in one space like Fill, which has unlimited storage.

Improves collaboration

Fill has a feature that allows you to CC others when you request signatures from a third party. Thus, you can quickly notify your HR managers or CEO in case you onboard a new team member and require them to sign your agreements.

Faster turnaround time

Since digital contracts can quickly be filled out, there will be a faster turnaround time for document fulfillment. Hence, this paves the way for a better relationship between you and your client. This puts you in a good light for getting things done fast.

Streamlines processes

In the traditional way, digital contracts work in such a way that you need a lot of people to approve specific fields and clauses, among others. With a digital contractor like Fill, you can simply add or remove fields you want to be filled out. You can also easily CC others.

Key Takeaways

Businesses need to create a digital contract to store contractual agreements so that they are safely stored in one place. A company should have a digital contract because it protects the business from things such as theft. 

The contracts ensure that all information in the contract is valid, and it is also protected to ensure no changes are made without permission. Having a digital contract will benefit you and your business by providing all agreements are clear, accurate, and protected.

So what are you waiting for? Wonder what is digital contract no more and actually start making and signing one with Fill! Sign up for your free account here.

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