This is a short introduction to a contract management system, including information on when they are used and an example of such a system.
A contract management system (CMS) or contract handling system is, as the name partially implies, a digital system to handle contracts. Typically, a contract management system is used to formulate contracts, negotiate the different conditions, sign them using digital signature and store them - typically in a cloud. Hereby, such a system facilitates the whole contract’s life cycle.
Advanced contract management systems furthermore include extensive API-integrations and perhaps even smart contracts, by which a contract executes itself. The benefit of doing it digitally is not just a more effective workflow and GDPR-compliant data flow. A contract handling system typically also provides a better overview over your data, making it easier to assess the value of your contracts, whether for daily SWOT analysis or a more extensive due diligence.
There is, as such, no fixed definition for what a contract management system. Therefore, it can encompass anything from simple cloud-based systems to advanced blockchain-systems. The crucial thing is of course, that it facilitates a systematic handling of contracts and agreements. Nowadays, a contract management system will typically be a SaaS-product (software as a service). This means, that the software is offered via internet and on a subscription basis.
A contract management system is usually used for simpler transactions, but it includes anything from purchase and sales agreements to non-disclosure agreements and employment contracts. Contracts are an essential part of a company’s value and livelihood. Therefore, it is important to make sure, that everything is under control. With a contract management system, you will have control over all functions and at the same time have the opportunity to cooperate on formulating and administrating legal documents across your own company.
Contractbook is an effective and digital contract management system for modern companies. It provides users with usable contract templates that can be signed with a digital signature and collectively stored in a secure space.
Thereby, you can avoid having to print and scan your contracts and you get a convenient overview during the whole process. You can even create teams to facilitate cooperation across the whole organization on these legal documents and increase transparency that way.