Compliance

Everything you need to know about using a Contract Template

Rachel Lee
October 20, 2021

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Creating a contract from scratch can be a time consuming exercise. Pulling together all the necessary clauses and provisions into one document that makes an agreement watertight in the future, can take a lot of effort from everyone involved. Plus, getting the contract to a point that all parties involved agree is also laborious. Using a contract template can be one way to speed up the process. Here, we look at what exactly a contract template is and how a contract template can be used. 

What is a contract template?

A contract template is a document that can be amended and edited to suit the needs of the user. The starting document is a basis for a contract that has all the basic elements and clauses required for the end purpose of the final, agreed contract. 

For instance, if you required an employment contract, you would use an employment contract template to start with. There are many different types of business contract template documents already in place in Contractbook’s template library. Each one of our legal contract template documents are clear and easily used - regardless of whether you have a legal education or not. 

How can a contract template be used?

A contract template, like any one of ours from our library, is easily populated with the relevant data to result in an agreement that includes all the necessary information. For example, names, addresses, effective dates and so forth. However, online contract templates like ours can also be collaborated on by many team members and parties, meaning that the negotiation stage of a contract is quick - as well as the simple act of populating the template to personalize it in the first place. Our software can also be used to automate the creation of contracts as well as saving the final agreement in cloud storage making it far more accessible for future use.  

Top Contractbook templates 

Contractbook has an extensive library of contract templates. Here are 5 that we think are essential for the majority of businesses out there. 

1. Business contract

A business contract, from our template library is useful for many companies. A good business contract, like ours, will be used to register some decisions and cement a relationship in paper form - and legalize it too. Our business contract template takes into account basic ideas that a business will need to consider - like fees, staff and employees, client obligations, subcontractors and confidentiality.

2. Non-disclosure agreement

Our non-disclosure agreement can be exceptionally important to use when hiring staff. Asking a potential employee to sign a non-disclosure agreement can be an effective form of protection for your company and any confidential information within it. When an employee signs a non-disclosure agreement they are prevented from disclosing confidential information, or else they will be in breach of contract and subject to the relevant legal repercussions. 

3. Rental of office space/commercial lease agreement

At some point or other, a business is likely to need to rent out office space or enter into some form of commercial lease agreement. While the two ideas are different (a commercial agreement can pertain to the leasing of machinery for example and not a property), a business still needs to protect itself if it wants to hire out a property, machinery or any other product another business offers. Doing so will lay down clearly what the terms and conditions are of the lease or rental, so that both sides can be sure of the payment structure and the time span of the lease. Additionally, when renting equipment or property, an agreement will often put in place stipulations on the other party so that you can be sure you are hiring a safe and workable property or piece of equipment. 

4. Data processing agreement

In a day and age where we are all using increasing amounts of personal data to help inform our business decisions and actions, the likelihood of a company needing a data processing agreement is high. Our template for a data processing agreement outlines an agreement on how to handle data, should you do so in your business dealings. Given how important the GDPR is, simply having a data processing agreement in the first place means you are starting life in data processing legally. Adhering to the agreement you sign and the wider GDPR is also critical should you want to avoid any data processing disputes in the future.  

5. Product supply agreement

Many companies and businesses will be providing a product or service. If you continually supply services or products to a client, you may wish to enter into a product supply agreement which outlines exactly what is required of you and the other party. As a result, a product supply agreement will detail what and when you can expect payment, and what and when your client can expect delivery. What’s great about a product supply agreement is that having one in place leaves nothing to chance. As a result, you can strengthen your business relationship as both sides know what is needed of them from the start. Doing so means you both profit from an effective and efficient partnership. 

Overall takeaways to using contract template software

In a time-pressured world, making use of technology available to us is key. Doing so enables us to work smarter and faster. Instead of wasting pressure minutes and hours on laborious administrative and repetitive work, technology such as contract template software, can mean we can dedicate our efforts to adding real value in our work. 

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