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In an era of remote work, fast-paced deals, and paperless workflows, online contracts have become the new standard for doing business. Whether you’re onboarding a freelancer, closing a sales deal, or finalizing a partnership, creating a contract online saves time, cuts down errors, and makes it easier for everyone to sign off – wherever they are.
So how do you actually create an online contract that’s clear, secure, and legally sound?
Table of Contents
What is an online contract?
An online contract is a legally binding agreement created, signed, and stored digitally. It contains all the same elements as a traditional contract – terms, obligations, signatures – but exists entirely online. This format makes it faster to draft, easier to share, and more efficient to execute, especially when parties are in different locations.
You’ve probably already signed an online contract without thinking about it: employment agreements, service terms, NDAs, or even a sales proposal with an e-signature block.
Related: What is an e-signature?
What should be included in an online contract?
Every contract should be tailored to the specific agreement, but most include:
- Names and contact info of the involved parties
- Scope of work or service
- Terms and conditions (e.g. duration, pricing, deliverables)
- Payment terms (amounts, due dates, invoicing)
- Termination clauses
- Confidentiality/non-disclosure clauses (if needed)
- Dispute resolution procedures
- Signature fields (for all parties)
Your contract should be written in clear, professional language, avoiding legalese when possible. If it’s too confusing, it invites misunderstandings – or worse, legal challenges.
How do I create an online contract?
There are three main ways to create an online contract:
1. Use a template
Platforms like Proposaly offer customizable templates for business contracts, proposals, and service agreements. You simply fill in the blanks, adjust the details, and send.
2. Draft it manually
If your contract is highly specific or includes legal language, you can create a custom version using a word processor or contract management tool – but you’ll need to manually handle formatting, sending, and signatures.
3. Use a contract management tool
Tools like Proposaly let you create, send, sign, and track contracts all in one place. This is ideal if you’re working with clients or leads who expect a seamless experience.
Explore: What is a business proposal?
How do I get an online contract signed?
The easiest way to get an online contract signed is by adding an e-signature field. With platforms like Proposaly, you can assign signature blocks to your client and yourself – no printing, scanning, or uploading required.
Once the recipient signs:
- You get a real-time notification
- The document is locked for editing
- Both parties receive a confirmation and timestamp
Bonus: You can track exactly when the client opened the contract, how long they viewed it, and whether they’ve taken action.
Are online contracts legally binding?
Yes – online contracts are legally enforceable in most jurisdictions, as long as they meet a few basic criteria:
- Mutual agreement (both parties agree to the terms)
- Consideration (something of value is exchanged)
- Capacity (both parties are of legal age and sound mind)
- Lawful purpose (the agreement isn’t for anything illegal)
Using an e-signature tool with an audit trail – like the one built into Proposaly – strengthens the legal enforceability by documenting exactly who signed, when, and how.
Related: What is a sales pipeline?
Final thoughts
Creating online contracts doesn’t have to involve legal teams, confusing software, or days of back-and-forth. With the right tools, you can draft, send, and sign contracts in minutes – without compromising on clarity, professionalism, or legal protection.
Proposaly makes it simple to turn your contracts into powerful, professional documents that clients can sign on the spot. Whether you’re closing deals, onboarding clients, or formalizing partnerships, Proposaly gives you everything you need – all in one place.
🔗 Start your free trial today at Proposaly.io and take control of your pipeline.
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