What are the core components of a CLM Lifecycle?

• A. Stages (Draft, Negotiation, Active, Signed, Archived), transitions, decision points, and associated tasks.
• B. Only stages and tasks.
• C. A linear sequence with no decision points.
• D. Profiles, permissions, and access levels.

Answer: (A)

In CLM, the lifecycle is defined by how you move through stages, the paths that connect those stages, the decision points that gate transitions, and the tasks that populate each step. This is why the best answer lists stages (like Draft, Negotiation, Active, Signed, Archived), transitions between those stages, decision points that require approvals or reviews, and the tasks linked to each stage.

Staging shows the order and state of the contract. Transitions describe how you move from one stage to another, often based on conditions or approvals. Decision points are essential gates where a sign-off or choice is required before continuing, ensuring governance and control. Tasks are the concrete actions that must be completed within each stage to enable the transition.

Alternatives miss important pieces: focusing only on stages and tasks leaves out how you move between stages and who or what gates progress; a purely linear sequence with no decision points ignores real-world approvals and conditional paths; and focusing on profiles and permissions shifts the discussion to security rather than the lifecycle flow itself.