Terms of Service - Monax in action

Monax Demonstrates Upgradability with its own Terms of Service

Monax Demonstrates Upgradability with its own Terms of Service

How we achieve flexibility today

In the world of paper contracts, there is very little compliance enforcement beyond formal dispute resolution mechanisms. While that may strike you as a deficiency, there is at least one beneficial byproduct: flexibility. In the real world, things do not always go quite as planned. Formal dispute mechanisms require substantial commitment of time and money, which disincentivizes their use whenever the disputed amount falls below a certain threshold of loss. Disputes and discrepancies of lesser amounts enjoy the flexibility that accompanies a lack of structure. This flexibility, which is necessary to accommodate normal variance in the execution of agreed terms, becomes inordinately desirable in the face of the perverse incentives created by taxing dispute resolution mechanisms.

Monax lets clients control their own compliance structure

I call these incentives perverse because I suspect existing options and the incentives that affect their accessibility stems from a focus on the wrong end of this process. What if the legal industry focused instead on compliance outside of dispute resolution, i.e. mechanisms that encourage and assist compliance before a dispute ever arises? What if we could help parties avoid non-compliance in the first place? If compliance mechanisms could offer the necessary level of flexibility while helping parties avoid non-compliance, particularly unintended non-compliance, we could reduce the burden on dispute resolution mechanisms and free those resources up for disputes that involve legitimate questions of law.

Monax enhances contractual arrangements by including process models, which are digitized roadmaps for performing the terms of an agreement. These roadmaps help keep parties apprised of how the terms are being performed and notify parties of impending obligations. In addition to providing enhanced visibility, process models also enable parties to impose a compliance structure. Parties are able to decide for themselves which tasks require strict compliance and/or a detailed record of compliance. Parties choose for themselves where to impose structure and where to permit flexibility.

Upgradeability enhances flexibility

Monax goes a step further and allows upgradability. Parties have the ability to amend the terms of their agreement without sacrificing either the visibility on the relationship or the chosen compliance structure. For example, Monax’s own terms of service for the use of the Monax Platform operate as upgradable agreements on the Monax Platform. For each Monax subscriber, the Monax Platform terms of service is the first agreement they enter into using the Monax Platform. It appears in the subscriber’s agreement library as the agreement that governs their use of the Monax services. Whenever we upgrade our terms of service, each subscriber is prompted at their next login to agree to the changed terms. A new terms of service agreement is added to their agreement library as the current version while the old version is listed as a fulfilled agreement. The flexibility offered by upgradability is a more deliberate and controlled exercise than the amorphous flexibility achieved previously through a lack of structure. Through upgradability, the Monax Platform enhances compliance and flexibility.


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Anjlee is Senior Legal Engineer at Monax.

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