What is the primary purpose of contract management?
Contract management ensures that agreements are fulfilled, risks are minimized, and performance is tracked.
What should a well-written contract include?
Clear terms, responsibilities, and performance metrics help reduce disputes and ensure accountability.
How does contract monitoring help organizations?
It allows timely detection of non-compliance and supports corrective actions before risks escalate.
Which of the following tools supports contract management?
Contract lifecycle management software helps track terms, deadlines, and obligations.
What is a key benefit of contract audits?
Audits verify that contract terms are being followed and help identify areas for improvement.
Why is documenting contract changes important?
Proper documentation ensures accountability and legal clarity if disputes arise.
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How can risk be minimized in contract management?
Risk is reduced by defining clear terms, penalties, and using performance-based clauses.
Which clause ensures contract performance meets expectations?
Service level agreements (SLAs) define measurable service standards and penalties for non-performance.
Why is a termination clause important?
It defines the conditions for ending a contract to prevent legal or operational issues.