IACCM Contract Management Forum

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2020-07-29 23:12:10

Contract Forgery and other Fraud (Sell-side POV) - What preventive controls do you have in place and does your organization allow sellers to send contracts to customers directly for signature/review

Hello Folks: We have a number of processes in place to present various types of contract fraud for example customer forgery or side letters which we do not tolerate. However, on occasion we do face issues. Its not a major problem, however, we are looking to reduce the risk as much as possible. I have two questions.

1. How have others in the community mitigated this risk with process, technology and people, etc.

2. Does your organization allow sellers to send contracts to customers directly for signature or review (e.g, email, e-signature, etc.) of this entire process handled by a contracts or legal team only?

Thanks in advance for your feedback.
 •  World Commerce & Contracting  •   2020-07-30 09:46:36
With regard to technology, Docusign and others have fairly secure systems in place to ensure the integrity of e-signature contracts. Some organisations, however, still try to arrange in person signings where possible. In these circumstances, though, you will need to ensure that all signed contracts are stored safely and in a searchable repository as finding signed contracts remains a perennial problem for many who do not have comprehensive document repositories deployed.
With regard to your second question, many organisations have their legal functions handle the contract signature process. The larger the organisation, however, the more impractical such a set up can often be, as there are just not enough resources. Many organisations still have the sales function handling the signature process. There should be strict guidelines and processes in place to help ensure integrity and to prevent mistakes such as wrong versions being signed etc.
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