SpotDraft streamlines contract management by organizing them through various stages. Each stage represents a specific step in the contract lifecycle, from initial creation to final execution. This article will guide you through the primary contract stages within SpotDraft:
Contract Stages:
- Draft:
- This is the initial stage for creating template contracts.
- The "Draft" stage is only available for template contracts.
- Pre-send approvals can be collected at this stage.
- Redlining:
- This stage represents active contract negotiation.
- Redlining involves exchanging versions of the contract between you and the counterparty, with edits and comments being made.
- Pre-sign approvals are collected for contracts at this stage.
- Signing:
- This stage represents the final step before the contract is executed.
- You'll set up the signature blocks in this stage.
- Once set up, you can send it to all recipients to sign the contract.
- Executed:
- The contract is considered officially executed when all signatures are collected.
- On Hold:
- The contract is placed on hold when it's not actively being worked on. This can happen for various reasons, such as waiting for additional information or addressing the staleness of the deal with the counterparty.
- This stage is useful for pausing a contract while awaiting further information or actions.
- Voided:
- The contract is marked as void when it is no longer valid. This could happen if the deal falls through.
- Any state except "Executed" can be moved to "Voided."
How to Transition Between Contract Stages:
- Draft to Redlining:
- For template contracts, the contract transitions to redlining when the contract is shared with the counterparty for review.
- Redlining to Signing:
- For template contracts, the contract transitions to signing when pre-sign approvals are collected.
- For template contracts without pre-sign approvals, the contract transitions to signing when the counterparty's review is complete.
- For third-party paper contracts, the contract transitions to signing when all the redlines have been resolved & pre-sign approvals are collected.
- Signing to Executed:
- Once the contract is signed by all the necessary signatories, it transitions to the "Executed" stage.