A business requires a variety of contracts viz. Non Disclosure Agreements, Vendor Contracts, MoUs, Property Agreements, Licensing Agreements, Sale-Purchase Agreement, and so on. Drafting and managing this plethora of documents not only increases the legal expenses incurred by the company but also decreases productivity and efficiency.
Managing these legal documents in an efficient way and having them comprised in a single place has become possible through utilization of automated tools. These tools enable the business to undertake activities likes multi-party negotiations, review by stakeholders, contract requests, contract revision, etc., and collectively encompass an automated contract management system.
Contract management works by abstracting key contract metadata from every contract of the organization. Automated contract management software works through a contract discovery process which locates all the contracts of a company, stores them in a single cache and extracts only the necessary data.
Automated contract management tool saves legal cost, time and manual labour and is used by lawyers, in-house legal counsels, and legal technology companies. However, it is important to use secure contract management tools that use data protection and backup to protect sensitive internal and external information.
Contract management system relies fundamentally on company’s data and if the company lack precise and complete data, extraction of relevant information and decision-making assistance cannot be executed properly. If the data is not analyzed error-free, the legal department will not be able to reduce company’s legal liability or complete multi-jurisdictional compliances.
It becomes imperative for a corporate entity to cope up with the technological changes and incorporate a case management tool that not only enables it to manage its legal cases in a single place but also helps it with accurate and safe contract management. Contract discovery and management have become ongoing processes in the administration of internal and external documents. Here are the top 6 benefits of automated contract management for lawyers, law firms, and in-house legal counsels:
- Ease of contract amendment: A contract management tool enables a business to easily amend contracts and assign tasks. It creates an association between stakeholders of the business and allows them to control their contracts more efficiently and promptly. This reduces the company’s legal liability, reduces contract cycles and increases output.
- Ease of analytics: Automated contract management enables a company to get complete insight and reports of its contract. It helps the business understand its contract liabilities and implement a focused decision-making system. Contract discovery identifies hidden opportunities and risks, thereby preventing any loss of goodwill or finances.
- Time management: It also ensures that the company’s contracts are drafted and executed within the stipulated period of time as it provides a complete insight of a document, and saves time and cost that is taken in negotiation with vendors and buyers.
- Error Identification: Contract management identifies any overpayment errors, clerical mistakes, or goods and services price errors. It also pinpoints any compliance infringement and prevents the company from committing any breach or fraud.
- Regular Updates: Contract management tool that comes with a case management tool have an in-built real-time alert mechanism that notifies the user about any amendments or additions to the contract. It also notifies the parties when the contract expiration date is near and needs renewal.
- Single Data Cache: Contract management system creates a single cache for all the contract data, enabling the business to manage every internal and external contract from one place. This single dashboard also provides an integrated audit trail, contract cycle alerts, and reports.
Automated contract management solutions are helping lawyers, corporates, and individual users by eliminating the inconvenience of manually drafting each and every contract and also allows the business to perform an integrated search of metadata with overall security applied automatically.
Know more about MyAdvo’s Case Management and Contract Automation Software. Email us at firstname.lastname@example.org or call now at 9811782573.