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Use Case for Contract Rules
The Submit Request feature for a contract allows contract requestors to raise a new contract request. Contract rules enable the automation of processing the contract requests submitted by the requestors.
The administrator can define rules to identify if:
- a contract document should be automatically generated after the contract is submitted for processing
- the contract should be sent to a user group for reviewing and processing the contract
The following are some requirements for which contract rules can be configured to automate the contract request process:
- If the record type is NDA, the system should generate a contract document automatically with a predefined template and send the document as an email attachment to the contract's primary contact.
- If the contract is other than NDA and needs review and negotiation with the other party, the system should assign it to the legal team.
- If the record type is NDA but contains non-standard legal language, the system should assign it to the legal team for review.
- If the Total Contract Value exceeds $5000, the system should assign it to the legal team for review.
Contract rules can be configured with one or more conditions to determine how a contract should be processed.
Let's take a use case to understand how contract rules work.
Use Case
For a contract of type NDA with Non Standard Legal Language checkbox not selected, contract document should be automatically generated. But, if the NDA contract has Non-Standard Legal Language checkbox selected, the document should not be generated, and the contract should be forwarded to the legal team for review. Additionally, if the non-standard contract is with ACME International account, it should be forwarded to a the account-specific legal team.
To achieve the above use case, you need to configure contract rules as shown in the table below:
Contract Rule # | Sequence | Rule Type | Rule Value | Inclusion Criteria | Filter Criteria |
---|---|---|---|---|---|
1 | 1 | Submit Request Mode | Auto | Record Type Equals NDA | NonStandardLegalLanguage Equals false |
2 | 1 | Agreement Template | <contract template name> | ||
3 | 1 | Email Template | <email template name> | ||
4 | 2 | Submit Request Mode | Manual | Record Type Equals NDA | NonStandardLegalLanguage Equals true |
5 | 2 | User Group | <user group for ACME International account> | Record Type Equals NDA |
|
6 | 2 | User Group | <general user group> | Record Type Equals NDA |
|
Now let's see, how the contract rules are executed depending on the contract information.
Scenario1: The requestor creates an NDA contract with Non Standard Legal Language checkbox not selected.
- The inclusion criteria for all the contract rules configured above are satisfied.
- The system evaluates the contract against the filter criteria configured. It determines that the contract matches the filter criteria configured for Submit Request Mode rule of type Auto.
- The Submit Request Mode rule of type Auto is triggered.
- All the rules configured with the sequence same as that of Submit Request Mode rule of type Auto are triggered.
As a result of the above, a contract document is generated with the template selected in agreement template rule. The contract document is sent in an email using the email template rule.
Scenario2: The requestor creates an NDA contract with Non Standard Legal Language checkbox selected for ACME International account.
- The inclusion criteria for all the contract rules configured above are satisfied.
- The system evaluates the contract against the filter criteria configured. It determines that the contract matches the filter criteria configured for Submit Request Mode rule of type Manual.
- The Submit Request Mode rule of type Manual is triggered.
- All the rules configured with the sequence same as that of Submit Request Mode rule of type Manual are triggered.
As a result of the above, the contract owner is changed to account specific user group selected in the user group rule.