Use Case: Obligation Extraction Upon Agreement Activation
This use case describes how obligations linked to clauses in an agreement template are automatically extracted and added to an agreement when the agreement document is generated and the agreement is activated.
- Obligation records are created in Conga CLM.
- Obligations are linked to the relevant clauses through the Obligation and Clause interface.
- The clauses linked to obligations are included in the agreement template used to generate the agreement document.
- The agreement has been generated and activated.
Business Context
Organizations managing high volumes of agreements need a reliable, automated way to ensure that all contractual obligations embedded in clause language are captured and tracked without manual effort. When obligations are defined and linked to clauses in advance, every agreement generated from that template automatically inherits the relevant obligations upon activation, giving contract managers immediate visibility into what each party is committed to fulfilling.
Overview
This use case demonstrates how obligations linked to agreement template clauses are automatically extracted and created on the Agreement record when the agreement is activated, making them immediately available for tracking and fulfillment.
Scenario
A contract manager generates an agreement document using a template that includes a Payment clause and a Confidentiality clause, both of which are linked to corresponding obligation records in Conga CLM. Upon activation of the agreement, the CLM system automatically extracts these obligations and adds them to the Agreement Obligations section under the agreement's Related tab, eliminating the need for the contract manager to manually create or assign obligations for standard contractual commitments already captured in the template.
Actors
Contract Manager: Generates the agreement document using the configured template and activates the agreement.
CLM System: Automatically extracts obligations from clauses present in the generated agreement document and creates obligation records on the Agreement upon activation.
Assignee: Receives notification of obligation assignment and is responsible for fulfilling the obligation.