There are huge unsolved problems around creating, managing and tracking contracts resulting in millions of man-hours of effort lost as well as billions of dollars of economic loss.
This is the first blog post on Legitt. And, we want to share what led to start Legitt and what we want to achieve. We promise that as we build Legitt, we will always be transparent on what we are doing and what we aim to achieve.
Every individual and business deals with a lot of legally binding documents on a daily basis. Every agreement you sign, every contract you have in place, every certificate you own, every license you have under your name, every invoice you share or receive is a legal (legally binding) document. For sake of simplicity, we refer to every such document as a ‘contract’. Over our lifetime as an individual, we sign or give our consent to hundreds, if not thousands of “contracts” The number becomes much higher for businesses.
Even though these documents are very important – both for the individuals and businesses, there are huge unsolved problems around creating, managing and tracking contracts resulting in millions of man-hours of effort lost as well as billions of dollars of economic loss.
The key problems with legally binding documents:
Creating: Even though majority of the contracts generated are fairly standard, there is no tool for selecting templates, editing them with the information of parties involved and generating the contracts. There is absolutely no platform or tool to enable coordination between the involved parties or stakeholders in the contract. All the coordination and communication happens on mail or via tedious offline channels.
Tracking: Majority of us think that once a contract is generated, our job is done. That’s just 1% of the work. 99% of the work on a contract happens after it is generated and put in place. In the current form the contracts cannot be tracked without human intervention. Imagine when you have hundreds of contracts in place, due dates are bound to be missed attracting penalties and fines. Sometimes missing key clauses can sound the death knell for the firm.
Managing: Contracts have legal obligations for the involved parties. By default, contracts do not work until there is human intervention. No contract will remind you of an approaching deadline or a due date. No contract will send alerts to you when a penalty clause is triggered. No contract will tell you that it needs to be renewed – until there is a human interpretation of the contract and intervention.
Dumb Vs Smart Contracts
In the current state, majority of the contracts the world works on are dumb contracts. In the sense that until a human being reads through them and marks out the key information, and acts upon it, there is no action.
While the concept of creating smart contracts on blockchain exists, the same is not being used for creating, tracking and managing actual ‘contracts’. Thus, the world keeps living with dumb contracts.
Legitt changes it all. We are in the process of building a platform that aims to solve all the above problems. Legitt not only allows you to seamlessly collaborate with your team to create, edit and generate contracts, but also helps generate programmable smart contracts on which event-based triggers, notifications, alerts and reminders can be built.
Contracts that “Manage” themselves
While the user can create and manage the contracts on Legitt, the contracts themselves proactively keep giving alerts and notifications to the user for important events. Thus, no deadline or due date is missed. No important contract lapses. Every compliance is monitored and managed with least effort.
Legitt also gives you the functionality to create contracts that have the capability to auto-generate and scale themselves without human intervention.
Legitt decentralizes the ability to check the validity and authenticity of certificates and licenses. In the current form, if you have a certificate or a license, the only way you can check whether it is authentic and valid is to reach out to the organization that issues it. This may take days or weeks. Legitt allows to generate certificates, licenses and contracts and make the verification check public. It takes a few seconds to check the validity and authenticity of the document using.
Legitt is here to transform how the world works with contracts. What we have built right now is just the first step in a journey of thousands of miles. Feel free to reach out to us to know more. We would be glad to talk and help you onboard on to Legitt.