Legal Environment of Business - JUM8 - 05-25-21 - Module 3

A contract is a legal agreement backed by law between two parties and explains a term of agreements. Contracts can be written either traditionally on paper and pen, or by computer known as e-contracts. A breach of contract can result in the party being affected being afforded damages for the breach. Traditional contracts are often written on paper, and both parties meet in person to read over the contract before signing it. In terms of ease of use, e-contracts are much easier to use than traditional contracts. Traditional contracts require people to meet in person and have someone draft up a contract. The contract then must go through multiple revisions and drafted many times before being completed. This takes time and effort through both parties. Electronic contracts often have preset templates that just require fill in the blank information and can be revised quickly. People also do not have to meet to revise these contracts as they can be emailed for quick access. Traditional contracts can take weeks to revise and draft up, and for both parties to meet and sign them. Electronic contracts can be revised the same day, and sent to both parties for electronic signatures, not forcing people to schedule in person meetings. Traditional contracts being written by people, are more likely to contain mistakes and errors that need to be corrected. Electronic contracts are often preset templates already verified by lawyers, making them free of error and much simpler to draft up. The biggest advantage to electronic contracts in my opinion is the amount of time it saves both parties. Instead of having to find times to meet in person and go over contracts, both parties can be emailed these contracts at their convenience and sign them electronically, avoiding nay type of in person meeting. Another factor is transaction costs between the two. Traditional contracts often require middleman to draft up contracts, and the physical costs of material are higher. Electronic contracts are much more economical which do not require the same amount of labor nor material costs. References Rai, I. A. (2019, October 5). Advantages of E-Contracts over Traditional Contracts. Medium. https://medium.com/feelium-e-contract/advantages-of-e-contracts-over-traditional-contracts-9ce1f7a1e9f0.di