In CLM, what is the function of dynamic clause resolution?

• A. It locks in a single clause for all contracts.
• B. It removes clauses not used.
• C. It selects the appropriate clause version for a contract at build time based on data values.
• D. It duplicates clauses across all templates.

Answer: (C)

Dynamic clause resolution in CLM is about choosing the exact clause text to include based on the contract’s data during build time. As the contract is assembled, the system looks at data values—such as jurisdiction, party type, deal value, or risk indicators—and picks the clause version that matches those inputs. This lets one template produce multiple, data-specific contract variants automatically, ensuring terms align with the specific situation without manual edits. For example, the governing law or liability terms can switch to a version appropriate for the contract’s country or value. It’s not about locking in a single clause for all contracts, nor about simply removing unused clauses or duplicating clauses across templates; it’s about data-driven selection to tailor each contract automatically.