Signed contracts are final, legally binding agreements where all parties have provided approval, typically through physical or digital signatures. Unsigned contracts are draft versions still under review, negotiation, or awaiting signatures; they are not yet legally enforceable. The key difference is enforceability: a signed contract creates obligations, while an unsigned one represents a proposal or work-in-progress.

Managing these involves clear workflow separation. Unsigned drafts are typically stored in designated collaborative spaces like shared drives or contract management systems, allowing controlled editing. Once signed, the final contract is moved to a secure repository (like Ironclad or DocuSign) with strict access controls, preventing further changes. Version history must be meticulously tracked for unsigned drafts to avoid confusion. For example, a sales team might collaborate on a SaaS agreement in Google Docs (unsigned), then move the fully executed PDF to SharePoint (signed). A real estate agent handles property offer drafts via email, archiving signed closing documents in a secure vault.

Effective management ensures version control for drafts, immutability for signed contracts, easy retrieval, and compliance. Advantages include reduced legal risk and audit readiness. Limitations arise if manual processes introduce errors or delays. Ethical obligations require maintaining integrity of signed contracts and confidentiality throughout. Future solutions increasingly use blockchain for tamper-proof verification and AI for smarter clause tracking. This rigor protects parties and enables smoother operations.