Contracts are essential to your company’s growth. But creating new contracts can be a lengthy process, and blockers are common along the way.
Fortunately, businesses can now generate contracts in a way that removes this friction.
But what does it actually mean to ‘generate’ contracts, and how does contract generation work? Find out everything you need to know in this Juro deep-dive.
What is contract generation?
Contract generation is the process of assembling or automating contracts. It’s one of the first stages of the contract lifecycle, and it typically involves creating and populating a contract before sending it to counterparties for negotiation - and hopefully signing.
Contract generation is a faster and more efficient way to create legal agreements, so it’s often preferred to the manual contract drafting processes that happen in tools like Microsoft Word.
How is contract generation different from contract authoring?
Both contract generation and contract authoring result in the creation of contracts.
However, the main difference between generating and authoring a contract is that authoring describes the process of actually drafting the words contained within a legal agreement. By comparison, contract generation typically involves automating the agreement using a pre-prepared contract template.
Contract generation cuts out the often lengthy process of manually drafting contracts and enables businesses to create contracts quickly and at scale instead.
But if generating contracts doesn’t actually involve writing them, what does it entail? Let us explain.
What is the contract generation process?
The contract generation process typically involves several simple steps. We’ll run through these stages now.
1. Creation and storage of contract templates
Before contracts can be generated, legal first needs to create contract templates that can be used repeatedly and to create contracts at scale. By creating these reusable templates, legal teams are able to retain control over what is and isn’t included in certain types of business contracts.
When using a contract automation tool like Juro, legal teams can even bake fallback clauses and conditions into these contract templates using a feature called conditional logic. This empowers them to set rules within contracts and automate the addition or deletion of certain clauses when specific conditions have been met.
Once finished and approved, these contract templates can then be accessed with ease by the relevant commercial team, making the generation of standardized contracts quick and easy.
2. Commercial teams populate automated templates
When it is eventually time for commercial teams to create contracts, they can then generate them by opening up a contract template and populating it. There are a few ways that users can do this in Juro.
Firstly, they can use the natural language Q&A workflow, which allows both the contract owner and the counterparty to populate the empty smartfields within the contract with the correct information, simply by answering a few questions.
As they complete the Q&A workflow, the contract template is automatically populated with all of the necessary information to complete and customize the contract. This works particularly well for populating DPA templates, NDA templates, and other simple contracts that usually only need to be populated with each party’s details.
Alternatively, you can generate contracts by integrating a tool like Juro with another business system. By doing this, you can pull all of the relevant data from the other platform into Juro which auto-populates the contract for you.
- You progress a successful candidate to the offer stage in Greenhouse, which triggers the generation of an offer letter.
- The data about a candidate is then pulled from Greenhouse into Juro where it’s used to automatically populate the relevant smartfields within a contract.
This removes the need to extract data manually from Greenhouse and input it into the contract template yourself. This can also be done to create contracts using other business systems, like Salesforce, Pipedrive and Workday.
This is just one example of how contract generation software can save businesses tonnes of time during the contracting process.
Lastly, Juro users can generate contracts at scale using Juro. This can be achieved by using Juro’s mass generation feature. We discussed how this can be done in more detail in an earlier post about bulk actions - if you’re interested!
3. Populated contracts are pushed out for approval and review
Once the contract template has been fully populated, it’s ready to be sent out for approval and review.
If you’re fortunate enough to use an all-in-one contract tool like Juro, this can all happen in the same workspace that the contracts were generated in. This means no back and forth between Word, email and shared drives to get contracts over the line.
To find out more about how Juro enables all teams to streamline the creation, execution and management of routine contracts at scale, hit the button below.