A Contract can be simply defined as an agreement between multiple parties in which one or more parties have an obligation (or several) to the others.

Developing a contract requires drafting the document (which takes several stages of revision), negotiating terms, executing the contract, and then finally following the terms of the contract.

This whole process is known as the lifecycle of a contract and is a critical business process. The contract lifecycle management process is time-consuming and if something goes wrong the result can be huge - lost revenue, lost sales, breach of contract, and unnecessary risk.

Contract Lifecycle Management (CLM) exists to simplify this entire process. Organizations use CLM to secure, standardize, streamline, and automate contract initiation, creation, negotiation, and execution.