Why do I need Templates and a Clause Library?
Most organisations have a standard “legal documents draw” for various contracts like NDA’s, procurement of various types, employment etc.
However, anyone can change it and may or may not seek the appropriate approvals for contract changes. Unless someone actually thinks to compare versions of the documents, then undesirable clauses may “leak” into the contract. Old templates may be used and custom changes for one contract can easily be used as a basis for the next contract.
Contract management systems ensure that users create contracts from standard approved templates. In addition, legal clauses are kept in an annotated clause library so the users can easily identify approved clauses and have some descriptive information to help them select the right clause and to know when it use it. The legal team to spend time ensuring the clause library is current and provides the variations required rather than spending hours figuring out what’s different with this contract.
Contract management systems maintain a history of contract changes and enable the user to easily identify modification of changes.