What is an electronic contract and how can you apply it in your company?

After the advent of teleworking and the new e-commerce, the electronic contract became an indispensable element. Especially to execute the digitization process of companies. Therefore, we will tell you more about them: what they are about, their types and what use you can give them in your company. Let’s get to it!

What is an electronic contract?

In Spain, an electronic contract is a contractual agreement that is concluded by electronic means. That is, the offer and acceptance occur through data processing equipment connected to a communications network.

Thus, the electronic contract is still like a traditional contract, but with some modifications. Therefore, it is still an agreement of wills through which the parties agree to comply with the provisions of the contract.

It is important to mention that it is fully applicable, as established in the civil code and the commercial code. 

You may also be interested in: B Corp: what is it and how to become one?

7 characteristics that an electronic contract must meet to be what it is

All electronic contracts share characteristics that make them what they are. In that sense, we will proceed to share with you the key characteristics of an electronic contract:

1. It is regulated by the general conditions of the contract, clauses predisposed and incorporated to multitudes of contracts of the same nature. The user can read and accept them before contracting, as well as save them on a durable and printable medium.
2. The general contracting conditions must comply with the requirements of transparency and sufficiency of information. The doctrine of transparency control is fully applicable.
3. Freedom of form. This does not mean that all contracts can be granted electronically to contracting on inheritance, family, or matters subject to public instrument. These are some examples of contracts that are not granted electronically. 
4. Full validity of the electronic contract, even if there is no prior agreement on the use of digital media.
5. The electronic contract is perfected after issuing the declaration of will of the acceptor. It cannot be ignored by the offeror without breaching good faith. 
6. There is no paper support, and in many cases there is no more than a click on the order. Therefore, it represents a difficulty with the proof of the agreement of wills. In order to solve this insecurity, mechanisms of proof were developed. For example, the digital signature, electronic certification, or digital trusted third parties.
7. The contract is concluded in the place where the consumer has his habitual residence. In international transactions with Spanish consumers, the rules of Spanish private international law are fully applicable.

4 types of electronic contracts that you can find

As a general rule, any type of contract can be concluded electronically, except those relating to family law and inheritance. However, there are different criteria that allow us to offer a classification of electronic contracts:

1. Classification by the subjects or contracting parties. In the consumer contract, it is necessary that at least one of the parties is a consumer of products or services. In the case of the commercial contract, all the contracting parties are companies.
2. Classification by object of the contract. In both cases, the difference lies in what is being sold. Delivery contracts refer to a product, while performance contracts refer to a service.
3. Classification by the issuance of declarations. In the electronic contract, the manifestations of will of the signatories are made exclusively by electronic means. The mixed contract requires both electronic and physical means.
4. Classification by form. When the consumer purchase of the product can be managed 100% online, the contract will be direct. On the other hand, when the product can be purchased online, but it is necessary to send it physically, it is an indirect electronic contract.

You may also be interested in: Big Data: the evolution of data management

Do electronic contracts have legal value?

The answer is yes. This is because it does not constitute a different type of contract. If there is the will of the parties and a contractual object or purpose based on a lawful cause, the contract will be legally valid.

The diatribe begins because electronic contracts allow the will to be manifested regardless of where the parties are located.

In other words, the simultaneous physical presence of the contracting parties is not necessary. Therefore, the probative value and legal effects of an electronic contract will depend on the technological means used to express the consent and the guarantee of the technological provider.

What is the use of the electronic contract at the electronic level?

In business, electronic contracts have multiple use cases. Below, take a look at some of the best known: 

• Online service contracting agreements. 
• Purchase and sale of products, contracting of insurance policies.
• Opening of bank accounts and contracting of financial products. 
• Remote commercial agreements.
• Documents related to the hiring of employees and many more.

As a result of their wide variety of uses, many organizations prefer them. This is due to their agility and flexibility when implementing them. 

If you want to have a service that facilitates even more the use of electronic contracts, in Gestion Direct we have GD Documentos. This is an online software that allows you to create your electronic contracts quickly and easily.

GD Documentos, the online software to help you with your electronic contracts

With document management software, you will be able to create and manage your documents intelligently. In addition, you will save time in mechanical processes and avoid manual errors.

You will also be able to create complex documents and manage all your teamwork without any problems. And not only that, you can grant personalized access to your team. So that they only have access to the information you decide.

In this way, you will also be able to monitor in real time the documents that are in process, finished, sent or signed. Of course, not to mention that it is a convenient software, since it is all in the same app.

It is also intuitive due to its ease of use. But it is also secure, as all data is encrypted.

Finally, you can take advantage of more than 50 customizable templates. These can be filled out using a base form that you fill out once per customer. This will save you a lot of time.

You may also be interested in: Financial data protection: How are customers protected?

If you are interested in learning more about the electronic contract, please contact us at tasconsultoria@tas-sl.es. Our team will provide you with the information you require and tell you about our available services. 

In addition, if you want to consult other solutions offered by Gestion Direct, you can visit their website at the following address