AI in Contract Lifecycle Management Quiz

Answers and explanations appear as you take the quiz.

1. An auto-renewing contract must be cancelled 60 days before its term ends. Why must the alert fire well before the renewal date?
   • Because renewal dates are always wrong in the contract text
   • Because the deadline that matters is the notice deadline 60 days before term end, not the renewal date
   • Because CLM systems can only send alerts once a year
   • Because the vendor must approve the cancellation in advance
2. Why should a CLM extraction pipeline keep the exact source text for each extracted value?
   • So that a reviewer can confirm the field quickly and the value can be audited
   • So that the contract can be translated automatically
   • So that the model uses less memory
   • So that duplicate contracts are deleted
3. According to the guide, why should notice deadlines be computed in ordinary code instead of by the language model?
   • Language models cannot read dates at all
   • Code can read scanned PDFs better than models
   • Date arithmetic, business-day rules and time zones are where language models make quiet errors
   • Contracts never state their term length
4. A master agreement has three later amendments. How should a CLM system decide which terms are in force?
   • Use only the master agreement, since amendments are informal
   • Average the terms across all documents
   • Use whichever document has the most pages
   • Link the family and apply the latest valid document's terms
5. Why does the guide recommend measuring extraction accuracy field by field?
   • A system can be excellent at party names and weak at exceptions to liability caps
   • Vendors only report accuracy for one field
   • Every field is always equally hard to extract
   • Field-level measurement is required by law
6. What does obligation tracking turn clauses such as reporting duties or audit rights into?
   • Signature requests
   • Tasks with owners and due dates
   • Marketing summaries
   • New contract templates
7. Even with excellent extraction, which contractual commitments stay invisible to a CLM system?
   • Clauses written in formal legal language
   • Governing law provisions
   • Side letters and agreements made by email that never reach the repository
   • Payment terms in scanned PDFs
8. How does the guide say low-confidence extracted values should be handled?
   • Discarded automatically
   • Accepted as correct to save time
   • Replaced with the most common value in the collection
   • Routed to human review