In CLM, which Smart Rule type triggers automatically when a document is added to a folder?

• A. Scheduled Rule
• B. Document Rule
• C. Folder Rule
• D. Automatic Rule

Answer: (C)

Smart Rules automate actions in CLM, and each rule type is tied to a specific trigger. When a document is added to a folder, a rule that watches the folder’s contents fires automatically. This makes folder-based automation immediate and repeatable, without manual steps. Folder Rule is designed to respond to changes in a folder, like new documents entering it. Scheduled Rules run on a set time, Document Rules react to document-level events, and Automatic Rules cover other automated conditions that aren’t specifically tied to a single folder’s content change.