Design thinking can be applied in various legal service processes like legal advice, legal awareness, drafting contracts and for better negotiations.Thereby it can be said that contract is one of example of legal design application or usage.

What is Contract Design?

Use of legal design or design thinking processes to adopt better approach to the layouts of the contract can be simply called as contract design. Smart contract or computable contracts and or visual contracts are example of contract design. Wherein the intentional design based on the need imbibed in the overall process to meet the requirements of parties to the contract with aid of technology.

Why Contract Design?

Contract design helps to build overall effective contract lifecycle management and serves the following purposes:

• Simplification of Contract Drafting and Contract Lifecycle Management Processes:Contract design helps in simplification of legal verbiage which further boosts to understand contractual terms between the prospective parties in the initial journey of contract drafting and swift execution, which ultimately infuse to build strong business relationships and trust.

• Systematizing the Contract Lifecycle management: Effective contract lifecycle management is crucial for all the businesses to sustain and survive. In order to design and implement effective contract lifecycle management process cross the organization contract design are helpful. As contract design process designed using the systematizing the contractual processes and overall management. This process helps in streamlining repetitive tasks.

• Guiding Database Collection for Tailormade Contract:With the use of contract design by pulling the relevant database the process of creating the tailormade or customised contract or bespoke contracts becomes easier and faster.

• Swift Contract Negotiation& Quick Deal Closure: Contract design helps in inducing the simplification, systematizing, streamlining and swiftness is useful in better negotiationprocess which leads to deal the seal quickly.

• Better and Clear communications: Simplification and aid of clarity via contract design boosts the better understanding of the contractual terms to all the stakeholders internal as well as external. Contractual design further boosts the clear communications among all the people involved in the contract execution and contract implementation.

• Economic and Swift: With the aid and use of contract design the contract can be closed quicker. Also, helps effective negation processes and which leads to quick deal closure.  Implementation of apt of contract design helps in reducing repetitive and standard contracts legal expenses.

• Better contractual/ Business Relations: contract that captures true intention of the parties with clarity are the fundamental to the business relations and contract design helps in ensuring these aspects. Thereby reduces the confusions or conflictingterms which may spark the spoil the business relationships. Better contracts lead the better business relations overall.

Takeaways

In building the effective contract lifecycle management processes contract designs are crucial and beneficial.  Use of contract design in each of process helps in avoiding the time consumption and reducing the errors and conflicting situations, infuses clarity and boosts the contractual business relations. Imbibing design thinking principles and elements to contractsframesthe comprehensive, robust, efficient and effective contract management.