A Complete Guide to Contract Signing Software

December 31, 2025

6 min read

One of the most important steps in business operation is the signing of contracts. It is the time when two parties enter into a formal agreement of terms, responsibilities, deliverables, and timelines.

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Quick Read

Summary generated by AI, reviewed for accuracy.

Contract signing software helps businesses finalize agreements faster with easy, digital signatures. It reduces delays by allowing teams and clients to sign documents from anywhere.

According to Docusign’s survey, 95% of businesses are either using or planning to use e-signature technology, which shows how important digital signing tools have become in modern workflows.

The reason behind electronic signature need is the growing demand of higher accuracy, convenience and real-time cooperation in the affairs of the contract.

This guide describes the definition of contract signing software, its functionality, its fundamental capabilities and how it helps businesses.

What Is Contract Signing Software?

Contract signing software is a platform enables people and companies to sign and execute efficiently. Organizations do not need to print documents, gather physical signatures, and store files manually, but they use software that digitizes the whole workflow.

These online contract signing software put all the contract activities under one roof, where all internal and clients can work with clarity and convenience.

Importance of Contract Signing Software

Make approvals and signatures easy through contract signing software. Here’s how it works.

Faster Contract Completion
Paper-based contracts may require days or even weeks to pass through all the stakeholders. The online contract signing software used to sign contracts enables the transmission, examination, which saves a lot of time to execute the agreement. Quick completion will enable businesses to concentrate on operations, sales and growth as opposed to waiting on paperwork.

Clear Visibility of Contract Status
A contract may have several stakeholders, and it may be hard to monitor its development. Contract signing software offers real time updates, which indicate who has signed, who is reviewing and who is yet to do something. This openness keeps teams up to date and minimizes time wastage due to lack of knowledge.

Improved Accuracy in Agreements
Contract mistakes may cause disagreements or misunderstandings. With a contract signing software, businesses can utilize ready-to-use templates, libraries of clauses and in-built checks to ensure uniformity and minimize errors. Correct contracts enhance improved business relations and operations.

Convenient Remote Access and Signing
In the contemporary organizations, they tend to operate in various places or have remote teams. Electronic contract signing software enables the stakeholders to view and sign contracts using any device laptops, tablets or smartphones. This flexibility assists in the businesses to take agreements forward without geographical limitations.

Centralized Storage and Easy Retrieval
Keeping track of signed contracts manually can be challenging, especially for larger organizations. Contract signing software stores all documents in a secure, centralized contract repository, making it simple to search, access, and retrieve contracts whenever needed. This improves record management and supports audits or compliance checks.

How Does Contract Signing Software Work?

Most contract signing software are structured. The following is a brief description of the way contract signing software handles a complete signing process:

Step 1: Contract Request

Users can upload an existing file or make contracts in Outlook using ready-made templates and clauses.

Step 2: Include the Parties that are needed

The electronic contract signing software enables the user to delegate roles like signer, reviewer, approver or witness based on the requirement of the agreement.

Step 3: Set the Signing Order

The companies can establish the sequence of the stakeholders to review or sign the document. This assists in ensuring a smooth flow of activities.

Step 4: Add Signature Fields and Required Inputs

The system has signature, initial, date, and checkboxes among other required inputs.

Step 5: Share the Contract Safely

The software forwards the document to the interested parties via secure links or email invitations.

Step 6: Digital Signing and Review

The contract is accessible to the stakeholders using any device, read through it, and sign with the help of digital or electronic signatures.

Step 7: Final Storage and Audit Record

Once all signatures have been signed, the document is stored safely on the platform and elaborate audit records are produced to be referred to in future.

Challenges Faced During Signing Agreements

Even nowadays, the use of manual processes to sign contracts in many organizations may slow down and disorganize the process of handling agreements. The following are some of the common problems that teams experience without digital tools.

Slow Document Movement
Physical contracts involve printing, mailing, or transferring documents between two or more stakeholders. This may take days or even weeks to delay final approvals. Electronic contract signing software enables the transmission and digital signing of contracts, which saves a lot of time required to conclude contracts.
Difficulty Tracking Progress
Having several parties, it is not always clear who has read or signed a contract. Teams might waste additional time on reminding or manually checking status. A contract signing solution has real-time updates and indicates the precise position of each contract, which assists teams to plan and act without unnecessary delays.
Version Confusion
Sending contracts via email may result in having several copies of one document and it is difficult to determine which one is final. Contract signing software stores all contract version under a single location and indicates changes clearly, therefore, users can always be sure they are working on the latest version of the contract.
Lack of Audit Records
The process of manually monitoring the approval or signature of a contract may be time-consuming and may lead to errors. The digital solutions automatically record all the actions forming a full audit trail. This assists the businesses in keeping good records to be used in compliance and reference, all in the contract signing software.
Collaboration Challenges
The contracts usually require the contribution of various teams, including legal, finance, or operations. In the absence of a centralized platform, the process of collaboration may be slow and fragmented. Contract signing software enables all the stakeholders to comment, review and approve contracts at a single point which makes the process easy and efficient.

Key Features of Contract Signing Software

Contracts with multiple parties may be hard to handle manually because all the signers must be contacted and reminded separately. Here are some important features to consider.

1. Clause Library

A clause library is a set of pre-tested, legally accepted clauses.

These clauses can be added in a short time when users are creating contracts, and they save time and ensure accuracy.

This also makes the contracts consistent throughout since the teams can use standard language and do not need to contract clause every time they enter a new contract.

2. Multi-Level Approval Workflow

Multi-level approval workflows allow businesses to establish approval paths according to roles, departments or contract values.

Electronic contract signing software automatically pass through approvers and less manual follow-ups are made.

This hierarchical contract approval process assists teams to handle approvals effectively and ensure that everyone is on track with internal processes.

3. Draft Comparison

A draft comparison is used to show the differences between contract versions, highlighting any addition or modifications for easy review.

Edits, comments or updates can be easily viewed by the user without having to read the whole document line by line.

This aspect minimizes errors and makes sure that all the stakeholders are informed of the most recent changes prior to signing.

4. Contract Amendment

The system enables an existing contract to be updated without having to start afresh.

The contract amendment are tracked, and all previous versions are securely retained for reference and audit purposes.

This allows one to easily modify terms, introduce new terms, or expand contracts without losing the history of the contract.

5. Version Control

Version control keeps a complete record of all amendments and updates made to a contract.

The teams have access to older versions whenever necessary, can compare them, and can review the development of the agreement.

6. Integration With Existing Systems

The contract signing software integrates with SharePoint, MS Teams, Outlook, Power BI and MS Copilot

Integration enables the flow of data between systems without any duplication of data and enhances operational efficiency.

Contracts can be managed by teams, and they do not have to leave their daily applications.

Recommended Reading: Advantages of SharePoint Contract Management

7. Audit Logs

Audit logs provide a complete view of the contract’s lifecycle, capturing all actions, changes, and approvals.

They capture all the activities such as uploads, edits, approvals, and signatures.

This aspect assists companies to comply and provides a solid record to be reviewed in case of legal or operational audit.

8. Sign Contracts Remotely

Mobile responsive signing enables users to view, read and sign contracts on any device such as laptops, tablets and smart phones.

This flexibility is helpful with remote teams, traveling employees, and clients that require getting agreements done fast

It makes sure that contracts do not have to be slowed down by location or device.

Benefits of Using Contract Signing Software

A modern contract signing solution comes with several benefits that can assist organizations to operate at a faster rate and with a clear understanding. These are seven significant advantages.

1. Faster Contract Completion

Handling of contracts manually may require days or even weeks because of delays and waiting for physical signatures. Contract signing software removes such barriers and contracts can be sent and signed immediately.

The stakeholders can read and sign agreements using any device, be it a laptop, tablet, or smartphone. Consequently, companies can make deals faster, minimize downtime, and speed up the duration of projects.

The quicker completion of the contracts also contributes to the preservation of the good relations with clients and vendors due to the timely fulfilment of the contract obligation.

2. Clear Visibility into Contract Progress

It may be difficult to track the progress of a contract, particularly when there are several stakeholders. A contract signing application will give a live status of any agreement.

The user can view whether a contract has been sent, viewed, under review or signed. Such transparency will minimize the necessity of follow-ups and enable teams to detect bottlenecks in real-time.

It is also possible to produce reports to track the general flow of the contract work by managers and legal teams, which simplifies planning and managing multiple agreements at the same time.

3. Improved Accuracy in Agreement Creation

Error in contracts may cause disputes or delays. Contract signing software has templates, library of clauses and ready-made language to assist teams in making documents correct.

Standard templates guarantee uniformity in all the agreements and minimize the chances of errors in important provisions. It is also possible to add frequently used clauses to a team in a very short time without having to rewrite them every time.

Organizations can save time, minimize revisions, and have professional and trustworthy contracts due to better accuracy in creating agreements.

4. Better Collaboration Among Teams

The contracts usually involve the contribution of various departments such as legal, finance, procurement and HR.

In the absence of a centralized system, teamwork might be disjointed and subject to misunderstandings. A contract signing solution enables all teams to view, comment and give approvals on the same platform.

This degree of cooperation enhances collaborative contract management and minimizes delays and makes sure that all teams are in tandem prior to a contract being signed.

5. Secure Document Management

Physical contracts may be lost, damaged or accessed by unauthorized people. All contracts are managed safely in digital platforms, and they are encrypted and restricted.

This keeps confidential business information safe and at the same time enables companies to show that they are in accordance with the law and regulations.

Businesses are also able to assign permissions to certain users hence only authorized users can be able to see or make changes to certain agreements.

6. Convenient Remote Signing

Remote signing has become a necessity with teams operating in various locations and clients usually in other areas. A contract signing solution allows one to sign a contract anywhere and with any device.

This comes in handy especially to remote workers, travelling employees or clients who work across different time zones.

Remote signing also avoids delays due to handling of physical documents and maintains the flow of agreements, despite the location.

7. Centralized Storage and Quick Retrieval

Managing contracts across multiple storage systems can lead to lost files and wasted time. Contract signing solution keeps all agreements in a centralized, organized repository.

Teams can search, filter, and retrieve contracts instantly whenever needed. Centralized storage improves efficiency, simplifies audits, and ensures that contracts are always accessible for review or reporting.

7 Best Practices to Follow While Signing Contracts

Here are some best practices you should follow to ensure a smooth, secure, and well-understood contract-signing process.

1. Always Work With the Latest Version of the Contract

Before signing, it is important to confirm that you are reviewing the most up-to-date document. Using an outdated draft can create misunderstandings, errors, and unnecessary delays in finalizing the agreement.

Request the owner of the document to share the newest file before you begin reviewing.
Compare the document name, version number, or timestamp to confirm accuracy.
Ask all teams to discard older versions to avoid accidental use.

2. Check That the Contract Is Properly Dated

A contract without a clear date can create legal doubts about when the agreement became active. Adding the correct date helps maintain clarity, supports legal validity, and ensures both parties know when obligations start.

Add the signing date on the front page or the signature page.
Confirm that all parties use the same date format for consistency.
Ask signers to verify the date before they complete their signature.

3. Review Every Page Carefully and Validate Changes

Reviewing contracts is essential to understand what you are agreeing to. If last-minute edits are made, they should be clearly marked and acknowledged.

Read each section slowly and highlight anything that feels unclear.
Use an AI review tool to spot changes, compare versions, or summarize key clauses.
Review the attached document and provide your feedback.

4. Make Sure All Required Signatures Are Collected

A contract is not in force until all the necessary parties sign the contract. Absence of signatures may cancel the agreement or postpone it. Ensuring that all the signatories are in place makes the contract compliant and complete.

Request a final signatory list before sending the contract out.
Confirm that every individual signs on the correct page or section.
Follow up with any signer who has not yet completed their part.

5. Verify the Identity and Authority of Each Signatory

All the signatories should be legally entitled to represent their organization. The signature that is not authorized may undermine the contract or cause conflict in the future.

Request designation or role confirmation and send the contract.
Confirm identity with official email, ID or authorized verification.
Get a written assurance when one signs on behalf of a superior authority.

6. Keep an Original Signed Copy for Records

It is important to have an original signed copy as a source of legal and operational reference. It serves as evidence when auditing contracts.

Store the original signed version in a safe and authorized digital repository.
Share controlled-access copies with relevant team members only.
Keep a backup copy stored in a protected secondary location.

7. Validate Contract Summary Before Signing

A quick summary will assist you in affirming the main aspects like schedules, commitments, cost, and renewal conditions. It serves as a checkpoint to ensure that both sides get the same information.

Get a brief overview of the owner or make one with AI.
Compare the summary and the entire document to ensure accuracy.
Make sure that the points do not match before signing.

Recommended Reading: How AI Helps in Summarizing Contracts

How CLM 365 Helps During the Contract Signing Workflow

CLM 365 is designed to simplify the entire contract signing process while improving efficiency and accuracy for businesses. Built on the Microsoft ecosystem, it integrates smoothly with MS Teams, Outlook, SharePoint, MS Word, and MS Copilot. This integration allows teams to manage contracts directly from the applications they use daily, reducing the need to switch between tools and improving overall productivity.

Businesses can also integrate CLM 365 with popular e-signature platforms such as DocuSign and Adobe Sign, enabling a fully digital signing experience.

It enables businesses to sign agreements with confidence, improve workflow visibility, and maintain a high standard of accuracy across all contracts.

Conclusion

The signing of contracts is a crucial aspect of business activities, and businesses nowadays require the solution that will allow them to sign contracts without any delays and issues.

As the digital transformation and the use of e-signatures have increased, more organizations are now using contract signing software to manage their contracts.

Start your 14-day free trial with CLM 365 today and experience a faster, secure, and organized contract workflow.

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Frequently Asked Questions

Does the system integrate with external e-signature providers for contract execution?

Yes, CLM 365 integrates seamlessly with leading third-party e-signature platforms, allowing you to send documents for signature directly from the system, track their status in real time, and automatically sync the completed, signed copies back into the contract record.