DocuSign, a Nasdaq-listed company, has acquired a ‘Smart Agreement‘ Clause, a leading legal automation developer. The Clause was one of the first to develop intelligent legal contracts, which aim to add mechanical components to traditional contracts that can but do not have to use blockchain.

The Clause was the brainchild of the Accord Project, a non-profit organization dedicated to innovative legal contracts that count some of the world’s most prestigious law firms among its members.

A service level agreement, such as server uptime, could be included in a contract and automatically trigger a penalty if it is not met. Payment is usually triggered by some action in most arrangements, such as delivery.

The payment can be automatically initiated if the contract has a bank account and an API linked to a delivery receipt.

Clause collaborated on fuel surcharges with BakerHostetler in 2019. Fuel is commonly accounted for in many contracts at a specific cost. Clause created an intelligent legal agreement that used inputs like miles, estimated fuel costs, and actual fuel costs to calculate the fuel surcharge using a predetermined algorithm.

The benefit is that all contract parties can access the information, preventing a subsequent disagreement regarding the gasoline cost rate.

The majority of those contracts were blockchain-based in the beginning. However, that necessity was relaxed over time, and the intelligent programmable element is now frequently employed without the need for blockchain.

DocuSign to Acquire ‘Smart Agreement’ Firm Clausehttps://t.co/a9PWFkUbWf#acquisition #businessbroker #instaflip #technology #business #news #digitalsignature #mergerandacquisition #service #ventures #digital #tech #ai pic.twitter.com/DiHb4DVwRx

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Clause’s $5.5 million Series A round in 2019 included Docusign as a strategic investor.

The Agreements Network and ConsenSys-affiliated OpenLaw, which counts Thomson Reuters as a partner, are two other blockchain players.

Icertis is another firm that uses blockchain for contract administration but does not refer to itself as a “smart legal contract.” Mercedes and the unicorn contract management startup met to address supply chain sustainability.