Glossary
Sometimes, it can seem as if you’re bogged down in technical terms and buzzwords when it comes to contracts. So we’re here to help you. In this A-Z of contract terms, you can find everything you need to know.
A
Acceptance
Acceptance means that your contract has been agreed upon by everyone who needs to sign it.
Account Admin
Account Admin is the person who is in charge of an organization’s financial and business documents. A lot of the work involves cross-checking documents to make sure that everything is accounted for and is also compliant.
This is the person who is in charge of an organization’s financial and business documents. A lot of the work involves cross-checking documents to make sure that everything is accounted for and is also compliant.
This is the person who is in charge of an organization’s financial and business documents. A lot of the work involves cross-checking documents to make sure that everything is accounted for and is also compliant.
Acknowledge
Acknowledge means that all parties involved in a contract confirm that it’s been sent for signing with all clauses as agreed.
Activate template
Activate template means that you’ve selected a template that you want to use to draft a contract. Quite often, there’ll be a button saying something along the lines of ‘Use template’ or ‘Activate template’ as you click on your chosen template.
Active contracts
Active contracts are contracts that are in the negotiation phase. Everyone’s agreed to the main terms of the contract in principle, but the final pieces are under negotiation.
Admin
Admin refers to all the little bits and pieces you have to do. For example; if you don’t have contract management software, then you might have to complete a lot of tasks around cross checking versions of contracts, filing them properly, and retrieving them when needed.
Advanced electronic signature
An advanced electronic signature is a type of digital signature that is highly secure and provides legal validity. It uses various methods to ensure that the signature is unique to the signer and can't be replicated or tampered with.
Agentic CLM (AI Contract Lifecycle Management)
Agentic CLM (Contract Lifecycle Management) leverages autonomous AI agents to manage the entire contract process, from drafting to execution and analysis, rather than just assisting with individual tasks. It uses LLMs, RAG, and APIs to handle complex workflows, reduce manual work and improve compliance.
Agreement in principle
An Agreement in Principle (AIP), also known as a Decision in Principle (DIP) is a non-binding, preliminary document before anything is signed. All parties confirm that they’re happy with the service that’s going to be provided, and all the different parts of the final draft of the contract.
Agreement of sale
An agreement of sale refers to a legal document that outlines the terms and conditions of a transaction between a buyer and a seller. It normally includes details such as the purchase price, payment terms, and any contingencies that must be met before the sale can be completed.
AI contract management
AI contract management uses machine learning, NLP, and GenAI to automate the entire contract lifecycle, from drafting and negotiation to risk analysis and obligation tracking. It enhances efficiency by reducing review times by up to 90%, speeding up processing by 400%, and minimizing human error in complex legal documents.
Aleatory contract
Aleatory contract is a type of contract that is dependent on a certain event happening. Take home insurance as an example: the buyer has to pay for the insurance each month, but the insurer doesn’t have to do anything unless a certain event, like a house fire, occurs.
API
API is a posh term for the bit of kit that forms the backbone of an integration. It basically allows two apps to talk to each other. In Oneflow terms, this means that you can work in our application and, thanks to our Salesforce integration, automatically see your work in your CRM.
Approval workflows
Approval workflows are structured, automated sequences of steps - reviews, edits, and sign-offs - that documents or tasks must pass through before becoming final. They establish clear, auditable processes, reducing manual follow-ups, enforcing SLAs, and ensuring accountability across business operations. These workflows can be sequential, parallel, or multi-stage, often automated using software for efficiency.
Authentication
Authentication is the process of verifying the identity of a party involved in a transaction. It is an essential component of many contracts to ensure that the individuals involved are who they claim to be. This helps to prevent fraud and protect both parties.
Automated contract renewal
Automated contract renewal is a digital process that automatically extends agreements for a set period unless terminated, helping businesses prevent service interruptions, reduce manual errors, and improve retention.
B
Basic contract agreement
Similar to an agreement in principle, a basic contract agreement is a simple legal document that outlines the terms and conditions of an agreement between two parties. The purpose of a basic contract agreement is to make sure that both parties are on the same page and understand their responsibilities.
Biometric authentication
Biometric authentication is a security process that verifies user identity using unique biological or behavioral traits, such as fingerprints, facial features, or voice patterns. It offers a high-security, low-friction alternative to passwords, commonly used for unlocking devices, secure payments and accessing sensitive data.
Breach of contract
Breach of contract happens when a clause in a contract is broken, or a certain service or product that had been agreed upon isn’t delivered - either on-time or at all. When this happens, litigation can result.
C
Centralized contract repository
A centralized contract repository is a secure, digital, and searchable system that consolidates all business agreements into a single location to manage their entire lifecycle - from creation to renewal - improving visibility, compliance, and efficiency.
Compliance agreement
A compliance agreement is a contract that ensures both parties are meeting legal requirements and following industry regulations. It outlines the specific standards that need to be met and the consequences of failing to meet these standards.
Consulting partner
A consulting partner is a professional who works with a client to provide expert advice and guidance in a specific area. They bring specialized knowledge and skills to the table to help their clients achieve their goals. With their help, clients can make informed decisions and navigate complex challenges and new ways of working with confidence.
Contract analytics
Contract analytics is the use of AI and advanced software to automatically extract, analyze and manage data from legal agreements. It transforms unstructured contract text into actionable insights, helping organizations reduce risk, ensure compliance, identify revenue leakage and optimize performance.
Contract automation
Contract automation is the use of software to digitize and streamline the entire contract lifecycle - drafting, negotiating, signing, and managing - without manual intervention. It uses templates, AI, and pre-approved clauses to reduce human error, ensure compliance, and accelerate workflows, allowing teams to move from manual, repetitive tasks to faster, automated agreement processes.
Contract collaboration
Contract collaboration is a legally binding document that defines the terms, responsibilities and intellectual property rights for two or more parties working together on a joint project. It mitigates risks, prevents disputes, and outlines how profits and resources are shared.
Contract data extraction
Contract data extraction is the automated process of identifying and capturing key information, such as dates, parties and clauses, from legal documents to convert unstructured text into actionable, structured data. Common use cases include managing renewals, obligations and compliance.
Contract drafting
Contract drafting is the precise process of creating written, legally binding agreements that define the terms, obligations and rights of parties involved. It translates mutual intentions into clear, enforceable language to prevent future disputes. Effective drafting ensures legal compliance, outlines specific deliverables, manages risks, and includes, at minimum, an offer, acceptance, consideration and capacity.
Contract governance
Contract governance is a strategic framework of processes, policies and roles designed to ensure contracts deliver intended business value, compliance, and performance after signing. It mitigates risks, prevents revenue leakage, and manages supplier relationships through structured oversight, such as regular audits, performance reviews, and clear communication.
Contract insights
Contract insights turn static, legacy, or active contracts into actionable, AI-driven data to minimize risk, reduce revenue leakage, and optimize business value. By utilizing AI for analysis and, in some cases, with legal, human-in-the-loop review, organizations can identify, monitor, and manage critical obligations, liabilities, and, in some cases, in-depth performance metrics across their entire contract portfolio.
Contract intelligence
Contract intelligence uses AI, machine learning, and Natural Language Processing (NLP) to transform static, unstructured contract documents into actionable, structured data. It enables organizations to automate review, identify risks, ensure compliance, and unlock hidden value across thousands of agreements.
Contract lifecycle management (CLM)
Contract Lifecycle Management (CLM) is the digital, end-to-end management of agreements, from creation, negotiation and approval to execution, compliance and renewal. It uses software to automate workflows, reduce human error, and centralize storage, which helps accelerate sales cycles, mitigate risks and enhance efficiency across legal, sales and procurement teams.
Contract management
Contract management is the systematic, end-to-end process of handling agreements from creation, negotiation, and execution to monitoring, renewal, or termination. It aims to maximize operational and financial performance while minimizing risks and ensuring compliance with terms and conditions.
Contract negotiation
Contract negotiation is the interactive process of discussing and finalizing the terms of a legally binding agreement between parties to ensure mutual satisfaction, clarify obligations and minimize future risk. Key focus areas include scope of work, pricing, payment terms, and liabilities. Successful negotiation involves preparation, active listening, and building trust.
Contract operations
Contract operations (Contract Ops) is the strategic management of a contract’s entire lifecycle, optimizing the people, processes and technology involved in creating, negotiating, executing, and monitoring agreements. It serves as a bridge between legal and business teams to reduce risks, ensure compliance, and maximize value.
Contract performance
Contract performance is the fulfillment of all obligations specified in a contract, including delivering goods, providing services, or making payments, ensuring all parties meet their agreed-upon goals. It involves active monitoring of KPIs to manage risks, maintain compliance and avoid disputes.
Contract repository
A contract repository is a centralized, secure digital system that stores, manages and tracks an organization’s contracts throughout their entire lifecycle. It acts as a single source of truth to eliminate scattered files, reducing risks like missed renewals, compliance breaches and version control issues.
Contract review automation
Contract review automation uses AI/ML to analyze, flag risks and compare contracts against playbooks, reducing review times and increasing consistency. These tools automatically identify missing terms, excessive liabilities, and compliance gaps, often integrating with Word and CLM systems to streamline workflows.
Contract risk management
Contract risk management is the proactive process of identifying, assessing and mitigating legal, financial, and operational risks across the entire contract lifecycle. It protects organizations from disputes, penalties, and reputational damage by managing obligations from negotiation to renewal. Key strategies include using standardized templates, clear language, and AI-powered software for monitoring.
Contract workflow automation
Contract workflow automation uses software to streamline the entire contract lifecycle - drafting, approval, signing, and storage - without manual intervention. Key benefits include faster revenue recognition, reduced risk, and centralized visibility.
Conversational contracting
Conversational contracting uses AI to manage the entire contract lifecycle - drafting, negotiation and analysis - via natural language, replacing traditional manual processes.
Counterparty
A counterparty refers to the party who didn’t draft the contract. They’re the ones who need to get their stakeholders to sign a contract.
CPQ (Configure, Price, Quote)
CPQ (Configure, Price, Quote) software automates the sales process for complex, customizable products and services, allowing sales teams to generate accurate, professional quotes quickly. It streamlines configuration, pricing, and quoting, reducing errors and shortening sales cycles.
CRM
Customer Relationship Management (CRM) is a technology-driven strategy for managing all company interactions with customers and prospects, aimed at improving relationships, driving sales growth, and increasing loyalty. CRM is your holy grail. It’s where you keep every last piece of information about your customers, and the products and services they have with you, as well as all the paperwork documenting this.
Custom field
Custom field refers to any part of a contract that can be customized. That could mean allowing a customer to choose from a dropdown menu, or multiple choice options, but it can also mean a free text field where a customer states their explicit requirements.
Customization
Customization is something you can do in Oneflow. It allows you to make your contracts completely unique to you. You can change colors, backgrounds and even GIFs, images and videos to really make your contracts stand out from the crowd.
D
Dashboards
A dashboard in the context of contract management software is a visual representation of key contract metrics and data. It provides users with an at-a-glance overview of contract status, upcoming deadlines, and other important contract-related information. Dashboards help users stay organized, prioritize tasks, and make informed decisions about contract management.
Data privacy
Data privacy are laws which help ensure that your data is stored securely, well protected and only handled in ways in which you have explicitly agreed to.
Declined documents
When a document is declined, it means that at least one signatory has decided not to sign it. This can lead to renegotiation.
Digital Sales Room
Digital Sales Room is a secure, personalized, and branded microsite where sales teams and buyers collaborate throughout the buying journey. It centralizes proposals, demos, case studies, and contracts in one shared space, replacing disjointed email threads with a streamlined, real-time experience that accelerates deal closures.
Document activities
Document activities is a record of what’s happening in a document or contract. It shows any suggested edits that have been made. These records are generally visible to anyone who has access to the document or contract.
Document automation
Document automation uses software to create, manage, and process high-volume, data-driven documents (contracts, invoices, reports) using templates, logic-based systems, and AI. It reduces manual errors, accelerates workflows, and ensures compliance by automatically pulling data to generate, update, and store documents.
Document integrity
Document integrity ensures that records remain accurate, complete, and unaltered from their original state, which is vital for trust, legal compliance, and security. It involves procedures like cryptographic hashing, digital signatures and File Integrity Monitoring (FIM) to detect unauthorized changes.
Document management
Document management is the systematic process of capturing, storing, organizing, and tracking digital and paper-based files to ensure security, compliance, and easy retrieval. A Document Management System (DMS) acts as a centralized repository, facilitating version control, secure access, and efficient workflow automation to improve operational productivity.
Document validity
Document validity is how long a document or contract is valid for after creation. Quite often, contracts come with a period of validity, after which, if they’re unsigned, they cease to be valid and must be redrafted.
Drafts
Drafts is the state that a contract’s in during creation, before it’s ready to send.
E
eID
eID apps enable you to sign just by typing in a personal code, or even just by using facial recognition. They’re not available in every country. A great example of an E-ID app is BankID in Sweden.
eIDAS / eIDAS regulation
eIDAS Regulation is a binding legal framework across all EU member states that standardizes electronic identification (eID) and trust services (eSignatures, eSeals, timestamps) for secure cross-border transactions. It ensures that electronic interactions are as legally valid and secure as paper-based processes.
Email notification
When something happens with a contract, for example; it gets signed, you’ll get an email straight to your inbox letting you know that a change has been made, and what that change is.
Enterprise Contract Lifecycle Management (Enteprise CLM)
Enterprise Contract Lifecycle Management (CLM) is a digital, AI-driven framework that automates the entire contract process, from initiation to renewal, across large organizations. It reduces risk, enhances compliance, and cuts negotiation times using centralized repositories and standardized templates.
Extensions
An extension is a small app that adds a specific functionality or ability to a browser.
EU Digital Identity Wallet
EU Digital Identity Wallet is a secure, personal app-based solution for citizens and businesses to store, manage and share official identification data, documents and create legally valid electronic signatures. Mandatory for all EU Member States by 2026, it enables safe online/offline authentication, protecting user privacy through selective data sharing.
F
Feed
If you’ve ever used social media, then you’ve used a feed. A feed brings you content and updates according to a specific algorithm.
Field
A contract field refers to a specific part of a contract. For example; a signing field refers to the part of the contract where the signatures need to be made.
Field update
A field update means that an edit has been made to a specific part of the contract.
Filters
Filters help you streamline your search process in your contract archive. For example; if you need to find a contract signed by John Hancock in December 2022, then you can set the filters to only show contracts containing ‘John Hancock’ and ‘2022’.
Form templates
Form templates are pre-made forms that contain pre-written text and layout, making it easy to get a form up and running.
G
GDPR
The General Data Protection Regulation (GDPR) is a comprehensive EU law that mandates strict rules on how organizations collect, use, and store the personal data of individuals in the EU/EEA. It grants users rights like access, deletion, and portability, while enforcing high fines for breaches.
GDPR compliance
If an organization is GDPR compliant, then it’s following the GDPR rules in the way intended.
H
Help center
If you have a problem, or something is unclear to you, then the help center is always there to provide assistance.
I
Insights
Insights give you info about your contracts, from their sign rate, and time of signing, to their likelihood of renewal.
Integration
An integration means that 2 programs talk to each other. For example; Oneflow’s integration with Salesforce means that you can work in Salesforce, and your contracts will automatically be updated in Oneflow.
ISO 27001
ISO 27001 is the international standard for information security management systems (ISMS), providing a framework for managing risks to data security, confidentiality, and integrity. It helps organizations of any size protect information assets, comply with legal regulations (e.g., GDPR), and improve security through a risk-based approach.
K
Know Your Customer (KYC)
Know Your Customer (KYC) is a mandatory, regulated process used by financial institutions and businesses to verify a client's identity, suitability and risks. It involves collecting and validating data, such as official IDs and proof of address, to prevent money laundering, fraud and terrorism financing.
L
Lease contract
A lease contract is a legally binding agreement between a landlord and a tenant. It typically covers the rental period and payment terms, as well as any restrictions or conditions that apply to the use of the property.
Legacy agent
Legacy agent is an agent who passes from one company to another after the original company goes bust, or is bought out.
Lifecycle
Lifecycle is the journey of the contract from start to finish. It refers to the entire contract process, from its initial drafting, right the way through to its renewal.
M
Message templates
Like form templates, message templates let you create pre-written messages that are good to go with just a click.
Metrics
Metrics are data points that help provide real-time insights into how something is performing.
N
Net Promoter Score (NPS)
Net Promoter Score (NPS) is a customer loyalty metric measuring, on a -100 to +100 scale, how likely customers are to recommend a business (9–10 = Promoters, 7–8 = Passives, 0–6 = Detractors). It is calculated by subtracting the percentage of Detractors from Promoters, helping firms gauge customer experience (CX) and drive growth. It tells you how likely customers are to recommend your company and/or product.
O
Obligation management
Obligation management is the systematic process of identifying, tracking and fulfilling contractual commitments, such as financial, performance, regulatory and renewal obligations, to ensure compliance, prevent revenue leakage, and avoid disputes. It transforms static agreements into active, manageable tasks, often utilizing CLM tools for tracking and automation.
P
Participants
In this context, these are the people involved in the actual signing of the contract, both from your side and the counterparty’s side.
Pending documents
Pending documents are contracts that have yet to be signed, notarized or have been given final signoff in some way.
Placeholder
You can use placeholders to make it clear where an edit needs to be made or approved, where personal info needs to be entered, or where you need to click to sign your contract.
Procurement contract management
Procurement contract management is the strategic, end-to-end process of managing supplier agreements - from negotiation and drafting to execution, performance monitoring, and renewal. It ensures compliance with terms, mitigates risks, controls costs, and fosters better vendor relationships.
Proposal software
Proposal software helps sales teams create, send, track and manage business proposals. It is a specialized tool that improves the proposal-creation process with features not found in generic document editors. These features improve efficiency, ensure brand consistency, and increase win rates.
Q
Qualified Electronic Signature (QES)
A Qualified Electronic Signature (QES) is the highest-level, legally binding electronic signature under EU eIDAS Regulation. It requires identity verification, a qualified certificate, and a secure signature creation device, holding the same legal effect as a handwritten signature across all EU member states.
Quoting software
Quoting software, also referred to as configure-price-quote (CPQ) software, allows you to quickly generate quotes and proposals for potential customers and established clients.
QTSP (Qualified Trust Service Provider)
A qualified trust service provider (QTSP) is an organization officially authorized under the EU's eIDAS Regulation to deliver trust services such as electronic signatures, electronic seals, and time stamping, among others.
R
Release
Release is when we drop a great new feature, integration or update. You’ll be notified as soon as a release happens.
Request
A request to sign is sent out as soon as you’re happy with a contract and have reached that stage.
S
Sales automation
Sales automation uses software to handle repetitive, manual sales tasks, such as data entry, email follow-ups, lead routing, and scheduling, allowing sales teams to focus on building relationships and closing deals. By reducing administrative work, companies improve efficiency, increase productivity, and reduce human error in the sales cycle.
Sales proposal
A sales proposal is a document used to persuade prospective clients to buy a product or service by outlining solutions to their specific problems, detailing deliverables, and setting pricing. It acts as a decision-making tool, focusing on value, trust, and ROI, usually presented near the end of the sales cycle.
Section menu
Section menu is a fantastic Oneflow feature that lets you add multiple choice options for quantities or price plans directly into a contract, making your contracts more flexible, and self-service friendly than ever before.
Service level agreement
Service level agreement (SLA) is any type of agreement that sets a minimum level of service expectations between a customer and a provider or supplier of some kind. The provider or supplier is committing to provide a service that meets at least these minimum standards.
Sign rate
Sign rate refers to the percentage or fraction of your contracts that end up fully signed and closed.
Support request
If you run into an issue when using the Oneflow platform, if you can’t find a specific function that you need, or you need some extra help getting started, then you’ll reach out to the customer support team. If you do this, you’ll have made a support request.
Suspended ticket
When a support ticket is made for a problem that already has a ticket, or is in the process of being sorted, then said ticket is suspended.
T
Tags
Tags is a part of both the archive and search functions of Oneflow. If you tag your contracts, this means that you can easily search for and find any contract based on a number of identifiers, such as the name of one of the signees, the date it was signed, or what the contract pertained to.
Template
With templates, you can find a ton of different types of contracts that are ready to go, directly in the platform. The best part is, they come with all of the dynamic capabilities of a Oneflow contract. Can’t find the template you’re looking for? Ask our AI Assist feature to help you get started.
Testing
Before we put a new feature or integration out, we test it thoroughly. But, when it comes to testing, why not take the time to find out how it can directly impact your work, and help optimize your workflows.
Time to sign
Time to sign is how long it takes for your contracts to be signed, on average.
U
User group
A user group grants access to multiple users in one go. In Oneflow terms, this means that multiple members of your team can instantly gain access to a workspace, without having to add them one at a time.
W
Workspaces
Workspaces are Oneflow's way of organizing documents and templates into relevant categories. Think of it as having different sub-accounts in which you can manage your documents and resources. Each workspace comes with its own templates, document archive, and address book.
