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CLM Glossary

From contract initiation to execution, this guide is crafted to assist contract professionals in grasping the nuances of contract lifecycle management.

All A B C D E F G H I J K L M N O P Q R S T U V W X Y Z


Capacity is the legal ability of a party to enter into a contract. It assesses whether the parties involved have the legal capacity and authority to create a binding agreement.

Centralized Storage

Centralized storage simplifies the process of locating and accessing contracts, reducing the risk of information silos and ensuring that all stakeholders have a single source of truth.

Change Management

Outlines the process for handling changes to the scope of work, including any adjustments to the timeline, resources, or costs.


ChatGPT is a language model developed by OpenAI. In CLM, it can be utilized for various natural language processing tasks, including contract drafting, analysis, and communication within the contract management system.

Clause Balance

Clause balance is the equilibrium or fairness achieved in the distribution of contractual terms and conditions. It ensures that the interests of all parties involved are considered and that the contract is mutually beneficial.

Clause Favorability

Clause favorability assesses the degree to which specific contractual clauses benefit one party over another. It involves evaluating the fairness and impact of individual clauses to ensure a balanced and equitable agreement.

Clause Library

Clause library is a repository of pre-approved contractual clauses that can be reused in various contracts to ensure consistency and compliance.

Clause Management

Clause management encompasses the organization, categorization, and maintenance of contractual causes throughout their lifecycle. It involves version control, updates, and ensuring that approved clauses are readily accessible for use in contracts.