When you manage a team of sales reps, your compensation structure is responsible for the success rate of your team. But sales targets aren’t everything and the relationship that your agents can nurture with clients is just as important for your brand.
The answer is not always simple – should you offer bonuses or commissions for high customer retention rates? Does a fixed salary or variable compensation make the most sense for your team?
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The contract execution process seems fairly straight-forward. As it is the last stage of the contract management process, many businesses fall into the pitfall of not actively monitoring contract execution. But there is plenty that could go wrong.
Staying on top of implementing the terms of a contract is usually far more important for its success. For all companies, it is crucial to learn how to monitor the execution of your contracts, and in this article, we want to explain to you why it is important.
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New contract management solutions are popping up all the time. This push towards new technology makes it hard for businesses to tell a platform with real merit from a flashy gimmick. It’s easy to get lost in a sea of endless choices. But the long and short of it is this: Companies that understand the benefits of blockchain and other technology will likely be positioned to increase customer success via smart contracts.
Smart contracts and blockchain technology are relatively new developments in contract management. So far, we have seen the adoption of smart contracts help with MBO programs as well as make contract negotiation and renewal a snap. Making the process of signing a contract easier for clients is one way to keep everyone on track as well. Perhaps most importantly, the fast transfer of reliable data through a blockchain and the ability to automate payment and contract execution also drastically reduce the amount of time it takes to get paid.
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The concept of a ‘smart legal contract’ is an inseparable part of discussions about the future of legal practice. The offerings that technology can provide to streamline legal services for businesses are truly invaluable.
The obvious question must be, what is the difference between a smart contract VS smart legal contract?
We will look into various aspects of smart contracts and smart legal contracts and try to reach a conclusion and hopefully, you would understand what the major differences are.
Exactly what a smart legal contract looks like, the nature of its capabilities and potential applications in practice have remained relatively obscure. This article will revisit basic concepts of smart legal contracts, explore a current case study, acknowledge hurdles to wider use and address future possibilities.
Smart legal contracts are different from the so-called “smart contracts”, which are self-executing scripts that necessarily operate on a blockchain system. Smart contracts may form part of a smart legal contract or smart document but do not represent the agreement in its entirety.
Fundamental to the concept of a smart contract, and the main driver of efficiency through faster processing times is the automatic performance of aspects of the contract without the need for human action or verification. A foreseeable outcome of this is lower transaction and operating costs compared to traditional contracts.
However, it is not just about efficiency. Smart legal contracts can also provide greater certainty and trust between the parties, particularly when incorporating blockchain or other distributed ledger elements which ensure the immutability of input data.
Smart legal contracts contain natural language text with relevant provisions of the document drafted in machine-executable components, that is, programmable code. The programmable elements interface with external sources of data (so-called “oracles”) (such as Internet of Things device data) or other software systems. The oracles drive the real-time status of the contract, for example, by enabling clauses to self-execute if the external data shows that specified contract conditions are met. The contract sits in a real-time digital environment – a website, platform or app – that each party can log in to and view the current status of any relevant terms.
The creation of smart legal contracts also requires a multi-disciplinary approach. Both lawyers and coders must understand and respect the other’s role and work collaboratively to achieve an effective design.
Standards can also play an important role in promoting the uptake of innovative technologies and have a role to play with the adoption of smart legal contracts.
“Standards and other publications…can improve the reputation of innovative technologies and lead the way in describing best practice. Developing and setting standards requires consensus, which encourages an international community of experts to share, collaborate and agree.”
If we want to see wider adoption of smart contracts and smart legal contracts, we need an effective governance framework via the further development of international standards. Governments and companies have significant potential to grow awareness about, confidence in and legitimacy of smart contracts in both the public and private sectors. This is particularly the case given the cross border nature of smart legal contracts, which can make it difficult for sovereign legislators to regulate them.
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Read moreContracts are fundamental for all transactions in the business world. But the recent market turmoil has highlighted the importance of digitalization of processes and adequate risk management.
In “conventional”, physical legal contracts, parties usually sign them with a handwritten/electronic/digital signature, depending on the form of the contract.
But as far as legal smart contracts go, how do parties sign and validate them? How can part B show its consent in adhering to part A’s smart contract? Are private and public keys used here?
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We’re stepping into the next stage in consumer-business relationships. As consumer awareness of environmentally friendly practices increases, companies need to enact significant changes towards building the ethical and sustainable supply chain of the future. One that ensures sustainable sourcing, manufacturing and product distribution.
In this article we explore 6 concrete steps to make your supply chain more ethical and sustainable.
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It can be mind-boggling to think about the thousands of processes and tasks that happen in the back of a company’s business operations. One such process is contract management. Effectively managing a large volume of contracts can be a challenge, and doing a poor job of it can be a costly mistake.
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