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Smart Contract Operations - Contract Compliance

May 24, 2018 9:34:08 AM

Nothing can strike fear into the hearts of attorneys or businesses like “breach of contract.” Contract negotiations are tedious, exhausting and overwhelming. When a hard fought executed contract is found to be non-compliant, the results can be devastating to all parties involved. While a simple verbal contract, which meets minimal criteria can be legally binding. For business transactions memorialized in writing, contract compliance is significantly more rigid and complex.

There are ways to ensure maximum accuracy in contract drafting and management that reduce risk of non-compliance.  Consistency and clarity are tantamount. These should be incorporated into every aspect of the contracting process. There are also things that should be avoided, such as:4643

  • Overly general or overly specific language that is difficult to define should not be used. If there is an industry specific need for it, clear definitions are a must at the outset. Unclear terms equal varying interpretations.
  • Nebulous references to obscure statutes with no citations are sure to cause problems down the road. As with language, clarity is key.
  • Unclear expectations regarding risk and liability will wreak havoc in the event that something happens to force one or more parties to accept responsibility.

This is where technology comes in to save the day (again).  With intelligent contract management software available to businesses now, a good way to avoid complications and errors is to employ automation. Interactive contract management software ensures accuracy and efficiency and stops errors in their tracks.  Not only does the software assist in the document assembly, contract drafting and negotiation process, once the contract is executed, this same software can ensure compliance with monitoring and reporting capabilities.

ContractRoom provides the perfect digital solution that is a business entities’ best defense against non-compliance.  With ContractRoom, every step of the contracting process can be automated and archived.  Because of its comprehensive data collection capabilities, ContractRoom can recall any and every aspect of contract negotiations (and negotiators) with a click. If changes were made, the sequence is documented. Once the contract is executed, ContractRoom provides continuous monitoring and alerts that ensure the requirements of the agreement are being honored.  With ContractRoom, compliance concerns can mitigated and minimized.

To significantly reduce the cost, timing, and frustration of contract creation and document assembly, large corporations are turning to ContractRoom for a solution. The ContractRoom cloud platform has revolutionized the way decisions are made and deals get done by fully automating and streamlining the process for the full end-to-end negotiation and contracting lifecycle. This is helping enterprises with thousands of sales and procurement professionals to get through the contract creation phase quickly, efficiently and cost effectively.

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This is the 5th in a series of 5 blogs on core ‘CLM Modules’:

  1. contract drafting (blog 1)
  2. contract assembly (blog 2)
  3. contract operations (blog 3)
  4. contract management (blog 4)
  5. contract compliance (blog 5)

 

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