What is a Clause Modification Policy, and how is it enforced in CLM?

• A. Policy describing how clauses are priced in contracts.
• B. Policy that allows any user to edit clauses without reviews.
• C. Policy governing who can modify clauses and how changes are approved before reuse; enforce via permissions and review steps.
• D. Guideline for archiving old clauses with no impact on current contracts.

Answer: (C)

Clause Modification Policy in CLM governs who can change contract clauses and the steps required to approve those changes before the revised language can be reused. This ensures edits go through a formal review so only vetted, approved language appears in contracts, protecting consistency and compliance.

Enforcement is achieved by tying clause editing to specific roles and permissions, so only authorized users can modify clauses. Changes typically must go through a change-control workflow: a modification is requested, routed to designated reviewers or approvers, documented with comments, and only after approval is the new version made available for reuse. The system maintains an audit trail and version history, showing who made changes and when, which supports governance and accountability.

This concept isn’t about pricing clauses, it isn’t about letting any user edit without reviews, and it isn’t simply a guideline for archiving old clauses. It’s about controlled modification and approved reuse of clause language.