How to Create an Electronic Contract

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How to Create an Electronic Contract. There are few differences between a traditional contract and an electronic contract. Aside from the means of delivering legal requirements, the specific aspects of a contract remain the same whether on paper or online. There are numerous steps you can take to create an electronic contract that is legally binding and well edited.

Shop around for electronic contract software that you can use for all of your online legal forms. You should only purchase this type of software if you will be creating a number of different contracts and legal documents that need to be adjusted for each recipient. Try out software demos and view templates at software providers like Proforce Software Corporation (see Resources below).

Include updated contact information for all parties involved in your electronic contract. When you create a contract online, you should place addresses and phone numbers at the top of the first page, as well as following the signature page.

Manipulate aspects of your standard contract that are variable based on your customers. Whether you use a word processing software or contract generator, you should be able to create custom contracts by adjusting deadlines and sales numbers. The adjustment of terms is easier in electronic contracts than traditional documents because they can be done without wasting paper or crossing out lines.

Add an electronic signature section to your contract for each party involved. In order to verify agreement by all parties, include lines for name, job title and Social Security numbers. This identifying information helps bind each party to the guidelines of the contract.

Request a hard copy of every electronic contract you send out. In addition to the electronic signature section, you should include a standard signature line for every group involved in the actions bound by the contract. The electronic and hard copies of the contract can be stored for use in future dealings or litigation.

Lock out editing options on electronic contracts before you send them out for use by clients or vendors. It is important to avoid confusion caused by accidental adjustments of any numbers, product names and other details on an electronic contract. Search through your contract software's tool bar for security functions and enable them after performing a final edit.

Tips & Warnings

  • Understand that jurisdiction over electronic contracts for online services remains murky. Services rendered electronically can originate from anywhere in the world, which means there are national and international legal issues for breached contracts. Maintain a record of contact information and communication with offending parties to help establish the proper jurisdiction.

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