Which approach enables multilingual contracts in CLM?

Which approach enables multilingual contracts in CLM?

• A. Use localized templates and clauses with language-specific fields
• B. Use a single English version for all locales
• C. Translate only after contract finalization
• D. Maintain translations in a separate system outside CLM

Answer: (D)

Managing multilingual contracts is best achieved by maintaining translations in a separate translation management system and linking or attaching the translated documents to the contract within CLM. This centralizes the translation workflow, ensuring consistency through translation memory, controlled reviews, and a clear governance process. It also keeps CLM templates clean and language-agnostic, while allowing translators to work in their preferred tools and maintain version history. In contrast, using localized templates with language-specific fields multiplies templates and increases the risk of drift across languages; translating only after finalization creates delays and potential misalignment with negotiations; and relying on a single English version for all locales fails to meet the needs of non-English readers and may breach local legal requirements.

Managing multilingual contracts is best achieved by maintaining translations in a separate translation management system and linking or attaching the translated documents to the contract within CLM. This centralizes the translation workflow, ensuring consistency through translation memory, controlled reviews, and a clear governance process. It also keeps CLM templates clean and language-agnostic, while allowing translators to work in their preferred tools and maintain version history. In contrast, using localized templates with language-specific fields multiplies templates and increases the risk of drift across languages; translating only after finalization creates delays and potential misalignment with negotiations; and relying on a single English version for all locales fails to meet the needs of non-English readers and may breach local legal requirements.