What are the typical contract lifecycle states and what do they signify?

• A. Draft (editable), In Review/Under Negotiation (pending approvals), Active/Executed (signed), Archived/Closed (retired).
• B. Draft, In Review, Active, Archived.
• C. Created, Pending, Completed, Closed.
• D. Initiated, Approved, Executed, Archived.

Answer: (A)

In contract lifecycle management, contracts move through stages that reflect editing, approval, execution, and retirement. Draft means the document is still being created and can be edited; it isn’t final and isn’t ready for stakeholders to sign off yet. In Review or Under Negotiation indicates the contract is awaiting approvals and possible term changes from involved parties. Active or Executed signifies the contract has been signed and is in force, with obligations binding on the parties. Archived or Closed means the contract has completed its active life and is retired from active use, kept for records, but no longer in effect.

This progression—Draft, then In Review/Under Negotiation, then Active/Executed, then Archived/Closed—captures the typical flow of a contract from creation to retirement. Other options tend to skip a dedicated negotiation/approval phase or conflate steps (like treating drafting as the same as execution), which doesn’t align with how contracts are commonly managed in CLM.