Advantages of E-Contracts over Traditional Contracts

A contract is a written or spoken agreement held between two parties. Contracts are legal agreements that acknowledge and directs the rights, terms and conditions of the parties to the agreement. It is legally enforceable as it meets the approval of the law. The contract usually involves the exchange of money, goods, services, contracts for employment, sales, etc. In the case of violation of the contract, the law grants the damaged party access to legal solutions such as cancellation and damages.

From the older times, people get involved in such contracts for employment, rent, for exchange of goods and services etc. For signing the contract people meet at a place physically along with a person involved in the process called middleman. The whole contract would get written by the person along with all the terms and conditions of the agreement. Then both the contracting parties would meet face to face to sign the contract.

But with changing time and introduction of new inventions and technologies, everything is changing for the better. E-contracts have taken place of traditional or paper contracts. E-contracts, in simple words, are contracts created by the consent of two or more parties via the digital form. The concept is very simple to that of the traditional paper contracts but here, contracts take place digitally. By using e-contracts, people’s lives will get easier and more efficient.

Let us get in detail to how E-contracts are advantageous over traditional contracts.

E-Contracts vs Traditional Contracts

Easy to Use
In traditional contracts, parties are required to meet physically to inform about the terms and conditions of the contract to each other as well as any middleman they hire. The modification and final drafting is a long process as several negotiations, back and forth drafting occurs. And when the final contract is drafted, parties meet again to sign the contract.

In E-contracts, ready to use templates are available for different types of contracts. In these templates parties just need to fill the basic details such as name, address, terms and conditions etc. The contract is completed as soon as both parties digitally sign the contract.

Available Templates
In paper contracts, the complete content of the contract needs to be written by a person according to the needs of the parties. The subject of the contract together with the terms and conditions of both parties is drafted.
In E-contracts, the templates on various kinds of contracts depending on different needs and use are available. One such platform is Feelium E-Contract. Contracting parties just need to choose the template according to their need and subject. Parties are required to fill the basic details such as name, address, terms and conditions in the template. Then both the parties attach their digital signatures to the contract. Also, the templates can be modified and changed according to the will of the parties.

Eliminating Errors
In traditional contracts, contracts are written down by a person. This involves the chances of making mistakes and errors in the contract.
In E-contracts, templates are already available, which are verified by the lawyers and contains the exact information that is required. This eliminates the chance of any kind of error in the contracts.

Saves Time
In paper contracts, parties need to meet face-to-face to agree upon the terms and conditions and sign the contract. The unmatched time and repeated modifications lead to the consumption of time of both parties.
In E-contracts, there is no need for parties to be physically present in order to accept the terms and conditions and sign the contract. Involved parties just sign the contract digitally and send a copy of the contract to each other which saves time.

Enhanced Security
In traditional contracts, contracts are signed on the paper that can easily be tampered with. Signatures can be forged and the contract can be modified.
In E-contracts, digital signatures are attached to the digital contracts. This avoids any sort of tampering in the contracts. Even if someone tries to, the altering will be detected and recorded.

Low Transaction Cost
In paper contracts, middlemen are involved which increases the cost in the execution of the contract. Not only middlemen but the cost of labor and material costs such as paper, printing etc are also involved.
In E-contracts, middlemen are eliminated along with the cost of paper, printing, electricity etc. This provides the user or parties with low transaction cost by using e-contracts.

These are the various advantages of e-contracts over traditional contracts. E-contracts can easily be signed and copy could be sent to another party digitally. They cannot be altered or changed resulting in fraudulence or cheating. No extra expense for paper, electricity etc, which saves money and is efficient. Companies and people are shifting from traditional or paper contracts to e-contracts by getting fascinated by the benefits of e-contracts.