Digital Documents FAQ
How is all the paperwork completed online?
Once users have matched up and begun their secure, private conversation, they have the option to use, edit, and sign template non-disclosure agreements and letters of intent digitally.
Depending on the situation and the document sent, a user can initiate the document process. Meaning, make the original edits and tailor it to their terms and send it to the other person. Once sent, the receiver has the opportunity to review it. If the receiver doesn’t agree with the terms, they can edit it and send it back to the sender. The process is a matter of negotiation, so there may be several drafts. Once the receiver agrees with the terms, however, they can sign it digitally. Once the receiver signs it, all previously editable sections lock in and the sender is notified of the other party’s signing. The sender can now sign it and the document is saved and posted to the conversation in a PDF where it can be downloaded and printed by both parties if desired.
Does signing documents online hold legal merit?
Yes, a signed document (digital or not) is valuable proof that a given agreement exists and that all parties involved have a full understanding of and have agreed to the same terms. Without such document, it can be difficult to determine exactly which conditions were actually agreed upon in the event of a dispute.
What is a Non-Disclosure Agreement (NDA)?
A Non-Disclosure Agreement (NDA) is a legal contract between two or more parties that highlights a set of confidential material or information that the respective parties wish to share but wish to restrict to the outside world (parties not included in the agreement).
In the situation of a business ownership transition, signing an NDA can be beneficial. An NDA protects the seller against anyone, especially a competitor, using the company’s information on pricing, strategy, employee data, projections, etc. to their advantage. An NDA gives the seller a level of comfort that if the opposing party violates the agreement, the seller is entitled to seek relief for lost profits or any potential harm suffered by the business.
How does the digital Non-Disclosure Agreement (NDA) work?
Tresle offers digital template documents that can help you with your deal making. NDAs help protect sellers against violations of privacy and confidentiality. Below are the high level steps for successfully completing a digital NDA on Tresle:
- Seller selects ‘NDA’ icon within a match conversation
- Seller fills out highlighted areas & clicks ‘Create’ button. Optional: additional notes
- Buyer is notified that an NDA has been created.
- Buyer reviews terms, fills out highlighted areas, signs, & clicks ‘Save’.
- Once NDA is signed by the buyer the text can no longer be edited- all is left is seller signature.
- Seller is notified that the NDA has been updated.
- Seller reviews NDA again, sign it, and clicks ‘Save’.
- NDA is complete.
What is a Letter of Intent (LOI)?
A Letter of Intent (LOI) is a document that highlights the general plans of an agreement between two or more parties prior to the agreement being finalized. An LOI is not legally binding in its entirety but does include certain sections that are legally binding. As a whole, an LOI demonstrates a serious commitment to move towards a final agreement on the set out and agreed upon terms.
How does the digital Letter or Intent (LOI) work?
Tresle offers digital template documents that can help you with your deal making. LOIs help buyers set out the groundwork for an offer to buy a business. Below are the high level steps for successfully completing a digital LOI on Tresle:
- Buyer selects ‘LOI’ icon within a match conversation.
- Buyer fills out highlighted areas & clicks ‘Create’ button.
- Seller is notified that an LOI has been created.
- Seller reviews terms, fills out highlighted areas, signs, & clicks ‘Save’.
- Once LOI is signed by the seller the text can no longer be edited- all is left is buyer signature.
- Buyer is notified that the LOI has been updated.
- Buyer reviews LOI again, signs it, and clicks ‘Save’.
- LOI is complete.
Note: An LOI can only be accessed if an NDA has been fully completed
After the document is finished, it is saved to the match conversation and is accessible by clicking on ‘LOI’ icon. From here, it may be downloaded.