A contract term type categorizes specific conditions within a contract based on their nature and duration. The Contract Term Type dropdown on the Contract Details page provides four options: Perpetual, Coterminous, Fixed Term, and Auto Renew.

Each contract term type dictates contract behavior when specific conditions are met, automatically activating, expiring, or renewing the contract.

The following table describes the mandatory fields that must be populated when you select a particular contract term type and their impact on the contract.

Contract term typeMandatory FieldsImpact on the contract
Perpetual
Contract Start Date


Contract End Date and Term Months fields are disabled.
A perpetual contract, also known as an evergreen contract, has no fixed end date. It continues indefinitely until one of the parties decides to terminate, expire, or cancel the contract manually. 
Coterminous
N/A
The Contract End Date for the child contract is inherited from the parent contract.
Coterminous contracts refer to two or more agreements that have the same end date or termination date. These contracts are often used in business and legal contexts where multiple contracts need to be coordinated to end at the same time.


Before you select the Coterminous option, ensure the current contract has a parent contract. If the parent contract has a different contract term type. 
Fixed term
  • Contract Start Date
  • Contract End Date or Term Months 

When you update the Term Months field, the Contract End Date field is automatically calculated and populated by the date that is one day prior to the date derived by adding Terms Months to the Contract Start Date i.e. ( (Start Date + Term) - 1 day)). If you want to enter a particular contract end date after entering term months, clear the Term Months field and select the required contract end date.

Ensure Activated Date is greater than the Start Date.

A fixed-term contract specifies a definite period for the contract's validity. 

Auto-activate:

When a contract Status is Fully Signed and reaches the Contract Start Date, the contract is automatically activated and the Status is updated to Activated.

The timezone of the logged-in user and organization must be the same to automatically activate the contract.

Auto-expire:

When a contract passes the Contract End Date, the Contract is automatically expired and the Status is updated to Expired. An email is sent to the contract owner and primary contact stating that the contract term has ended.

Auto Renew
  • Contract Start Date
  • Contract End Date or Term Months 

When you update the Term Months field, the Contract End Date field is automatically calculated and populated by the date that is one day prior to the date derived by adding Terms Months to the Contract Start Date i.e. ( (Start Date + Term) - 1 day)). If you want to enter a particular contract end date after entering term months, clear the Term Months field and select the required contract end date.

Ensure Activated Date is greater than the Start Date.

An auto-renew contract term is an arrangement where the contract is designed to automatically renew for a subsequent period (often the same duration as the initial term).

When you select the Auto Renew option, you can see the Renewal Terms field. You can enter all the renewal terms in the field.

An email is sent to the contract owner and the primary contact stating that the contract is renewed. Renewal terms are also added as part of the email if available in the contract.

To set a contract term type

  1. On the Contract Details page, click Edit.

  2. In the Terms & Renewals section, click the Contract Term Type dropdown and select the required contract term type.

  3. Click Save.