Contracts Concepts

Contracts formalize the terms and obligations of a business relationship; for example, the process and other terms and conditions under which a customer is buying products and services from a provider. Vlocity centralizes contract management in a single repository built on Salesforce, and enforces the life cycle of each individual contract and its associated documents.

The contract life cycle is the process of moving the contract through states and actions, configured using the Vlocity Contract State Model and Vlocity Actions objects. Vlocity supports contracts on opportunities, orders, and quotes.

A Vlocity CLM contract consists of the following components:

• Contract data, which is a combination of Contract and Contract Line objects.

• Contract documents, where each contract document record represents a version of the online contract document and its attached files.

Contracts include the following types of content:

• Standard legal terms

• Unchangeable terms

• Customizable content

• Dynamically generated content

To create a template contract containing an umbrella set of details that can be used to govern future contracts, you can designate a contract as a "frame agreement" and populate it with information about products, prices, and legal terms that have been negotiated with the customer. During configuration and pricing, orders, quotes and opportunities can refer to the frame agreements instead of price lists or price books. You can implement a Vlocity open interface to price products using the frame agreement instead of standard price lists. You can link a master frame agreement to one or more child contracts that are generated by child orders.