The Difference : Electronic Contract vs Traditional Contract
Over the past few decades, new inventions and technologies are being wintroduced in every sector and industry. These are helping in upgrading processes and tasks for people’s comfort. One such example of technological up-gradation can be seen in the legal sector in the form of e-contracts. The digitized mode of legal documents has taken the place of traditional paper-based contracts nowadays.
In paper contracts, you meet your contracting party physically in order to get into a legal agreement. You need to meet many times in order to suggest your terms and conditions to the other party and listen to theirs. When the final document gets ready, parties again meet to sign the document. This whole process of contracting is a long and tiring task.
But in electronic contract, an agreement is created electronically with the consent of the parties. It is similar to paper contracts, the only difference is that the whole process is done in a digital form. Electronic agreements are making contracting easier and efficient for everyone from individuals, businessmen and professionals.
Let’s discuss how electronic contracts are proving to be advantageous over traditional paper contracts.
E-Contracts vs Traditional Paper Contracts
- Available Templates
Digital Contracts
Depending on different needs and uses of the industry, templates of various kinds of contracts are available online. Parties getting into an agreement need to choose a template, fill details and then attach their e-signatures to it. One such platform that provides these facilities is Feelium E-Contract. Here, you can even modify the template according to your needs.
Traditional Paper Contracts
Whereas here, the whole content of the contract is written by a person according to what the parties want. The subject along with the terms and conditions of both parties involved is drafted and for every change, a new draft is created. It could take days and weeks to draft a paper contract.
2. Easy to Use
Electronic Contracts
As readymade templates are available for various kinds of contracts, parties are only required to fill the basic details such as name, address, terms and conditions etc. After the agreement is finalised, parties digitally sign it and the contract is completed. Making the process simple and easy to use.
Traditional Paper Contracts
In this case, parties need to meet face-to-face to inform each other as well as any middleman they hire, about the terms and conditions of the agreement. Here, changes and final drafting takes a long time as multiple modifications and draftings are done. Then, after the final contract is prepared, parties meet again in order to sign the document. The whole process requires time from both parties and the middleman.
3. Eliminates Errors
Online Contracts
The chance of any kind of human error is eliminated as the whole process is more automated. Like when you use a template at feeliumecontract.com, you just need to fill the blanks and rest remains the same.
Traditional Paper Contracts
Here, the content of the contracts is written down by a legal professional which requires time. It increases the chance of making mistakes in the document as ‘to Err is to Human’.
4. Low Transaction Cost
Digital Contracts
This helps the user by giving them a low transaction cost option. Here, the cost of paper, printing, ink, etc all get excluded as the process only requires an electronic medium at both ends.
Traditional Paper Contracts
Here, the cost of labour and material such as paper, printing etc. are involved which increases the cost in the implementation of the agreement. The numerous copies for each party and each draft, add to the transactional cost of a contract.
5. Saves Time
Electronic Contracts
In this case, parties are not required to meet physically to accept the terms and conditions as well as sign the document. Contracting parties just digitally sign the contract and send a copy of it to each other which in conclusion, saves time.
Traditional Paper Contracts
As mentioned above, here parties meet face-to-face to agree with the terms and sign the document. Countless modifications and unmatched time is consumed of both parties.
6. Enhanced Security
Online Contracts
In online agreements, you attach your digital signatures to show your consent. Feelium e-contract lets you authenticate a signature using O.T.P. technology. This eliminates any kind of tampering in the agreements. And if anyone tries to do that, the changes will get detected and recorded.
Traditional Paper Contracts
Here, documents are signed on the paper which increases the chances of forging the signatures and modifying the document. This makes paper documents less secure.
So, we saw the benefits of electronic contracts over traditional contracts. And in conclusion, we can say that E-contracts save time and money and are more efficient over paper-based contracts. The process involved in digital legal documents cannot be changed resulting which saves you from fraudulence or cheating. The benefits of online contracts is attracting people to choose it instead of paper contracts.
