Standardization is a term you’re likely hearing now more than ever in when it comes to contract management. Because of the uncertain economic climate, an increased volume of business deals, and the availability of sophisticated technology, standardization has become a common solution for a variety of issues. What exactly does standardization in contracts mean? Here’s a brief overview of what it means and how it is most useful.
What Is a Standardized Contract?
A standardized contract is essentially a template designed to address a particular situation without needing to be tailored to a specific client. A standardized contract template contains the basic terms needed in a given case, expressed as clearly as possible, while still providing space for additional clauses that may be unique to the situation. With the help of contract management software, standardized contracts are extremely efficient.
What Is Standardized Language?
Effective contractual language should be as straightforward as possible to avoid ambiguity. The importance of clear communication in contracts cannot be understated, as unclear terms can lead to legal difficulties. Standardized contractual language is a set of terms within a contract template that create consistency and make deviations from original clauses easier to spot in the negotiation process. With standard language, you know what you’re getting into from the beginning, and you can rely on certain clauses to hold.
What Are the Benefits?
With the expanding capabilities of contract management software, we are learning new benefits to standardization all the time. Automation technology and standardization go hand in hand, giving companies the ability to streamline processes across the organization and making their overall practice more efficient.
Standardized language is also uniquely effective in risk mitigation. Having ready-made templates reduces the risk of compliance violations, and prevents troublesome ambiguities in contractual language. Check out the eBook, The Importance of Standardizing Contract Language to learn more.
The LinkSquares platform makes standardizing language across contracts easy and efficient by giving legal teams the ability to draft pre-approved contracts with standardized language. If you're ready to take your contract management to the next level, contact LinkSquares today.