How do retention and archival policies work in CLM?

• A. Define retention periods with no automatic actions.
• B. Store all contracts indefinitely with no archival.
• C. Define retention periods and archival rules; automatically archive or purge contracts when criteria are met.
• D. Only apply to paper contracts.

Answer: (C)

Retention and archival policies in CLM control how long contracts stay in the system and what happens when those timeframes or criteria are met. The best approach defines both the retention period and the rules for archiving, and then automates actions when criteria are reached—such as moving a contract to an archive or purging it. This automation keeps records compliant with legal and regulatory requirements, reduces clutter in active stores, and supports safe data management for later needs like eDiscovery. These policies apply to electronic contracts within CLM, not just paper. If you only defined a retention period without automatic actions, nothing would enforce the lifecycle. If you stored everything indefinitely, there would be little governance or risk control. If you thought these rules only applied to paper contracts, you’d miss how CLM governs digital records too.