A Contract Management Glossary for Indian Businesses: Fifty Terms, Plain Definitions, Indian References
Fifty terms a business professional meets in contracts, e-signature and contract management, each explained in a sentence or two with the Indian legal reference where one exists. From "acceptance" to "wet signature".
Contract management has a vocabulary borrowed from law, procurement and software, and the Indian versions of several terms differ from the imported ones. This glossary gives short, plain definitions with the Indian reference where it matters. Position as of October 2026.
Aadhaar eSign. An electronic signature made by authenticating with UIDAI (OTP or biometric) through an eSign Service Provider; recognised under section 3A and the Second Schedule of the IT Act, 2000.
Acceptance. The assent that completes a contract (section 2(b), Indian Contract Act, 1872); must be communicated.
Addendum / amendment. A document changing an existing contract; needs the same formalities as the original and may attract stamp duty.
Approval matrix (delegation of authority). The table of who may approve and sign which contracts by type and value.
Arbitration clause. An agreement to resolve disputes by arbitration under the Arbitration and Conciliation Act, 1996; saved from section 28 of the Contract Act.
Audit trail. The record of who did what to a document and when: hash, identity events, timestamps, IP, dispatch and signature events; the basis of a section 63 certificate under the Bharatiya Sakshya Adhiniyam, 2023.
Auto-renewal (evergreen). A clause renewing the contract unless notice is given within a window.
Bharatiya Sakshya Adhiniyam, 2023 (BSA). India's evidence law since 1 July 2024; section 63 governs proof of electronic records.
Certifying Authority (CA). An entity licensed by the Controller of Certifying Authorities to issue digital signature certificates.
Change in law clause. Allocates the cost of legal or regulatory changes after signing.
Clause library. A set of approved clauses and alternatives used to assemble contracts.
Clickwrap. Acceptance of online terms by an affirmative click; a contract under section 10A of the IT Act if properly presented.
Consideration. Something of value exchanged; required for a contract (section 2(d), Contract Act).
Counterparty. The other party to a contract.
Cure period. The time a breaching party has to fix a breach before termination.
Data Fiduciary / Data Processor. Under the DPDP Act, 2023, the person who determines purpose and means of processing / the person who processes on its behalf (sections 2(i), 2(k)).
Data processing agreement (DPA). The contract required by section 8(2) of the DPDP Act when a processor is engaged.
Digital Signature Certificate (DSC). A certificate binding a signer's public key to their identity, issued by a CA; used for digital signatures under section 3 of the IT Act. Class 3 is the class now issued.
Dispatch. Sending a document to a recipient with a record of delivery; for electronic records, section 13 of the IT Act sets default rules.
E-stamp certificate. Proof of stamp duty paid through an electronic system (SHCIL, GRAS, e-GRAS), attached to the instrument.
Effective date. The date the contract's obligations start; may differ from the signing date.
Electronic record. Data, records or images in electronic form (section 2(1)(t), IT Act).
Electronic signature. Authentication of an electronic record by a technique in the Second Schedule of the IT Act, including a digital signature (section 2(1)(ta)).
Execution. The act of signing a contract so that it binds.
First Schedule (IT Act). The list of documents excluded from the IT Act: certain negotiable instruments, most powers of attorney, trusts and wills (as amended 26 September 2022).
Force majeure. A clause excusing performance on defined events beyond a party's control; narrower than frustration under section 56 of the Contract Act.
Governing law. The law that applies to the contract.
Hash. A fixed-length fingerprint of a document; any change to the document changes the hash, which is how e-signatures detect tampering.
Indemnity. A promise to compensate for loss (section 124, Contract Act).
Guarantee. A promise to answer for another's default (section 126, Contract Act).
Intake. The request step that starts a contract, capturing the data the workflow needs.
Jurisdiction clause. Names the courts or seat for disputes.
Limitation of liability. A cap on what a party can be made to pay; section 74 of the Contract Act limits pre-agreed sums to reasonable compensation.
Limitation period. The time within which a claim must be brought; generally three years for contract claims under the Limitation Act, 1963.
Liquidated damages. A pre-agreed sum for breach; recoverable only as reasonable compensation (section 74).
MSE (micro or small enterprise). A supplier registered under the MSMED Act, 2006; payment terms capped at 45 days (section 15).
Non-compete. A restraint on competing; void after the term under section 27 of the Contract Act.
Notice clause. How formal notices are sent and when they are deemed received.
Obligation register. The list of dated or triggered duties under live contracts, with owners and alerts.
Place of execution. Where the contract is signed; determines the state whose stamp law applies.
Playbook. The approved negotiating positions and fallbacks for a template.
Redlining. Marking changes to a draft during negotiation.
Registration. Recording an instrument with the sub-registrar under the Registration Act, 1908; mandatory for leases over a year and immovable-property instruments.
Renewal window. The period before expiry in which a renewal or non-renewal notice must be given.
Repository. The central store of executed contracts and their records.
Section 63 certificate. The certificate under section 63(4) of the BSA that accompanies an electronic record produced as evidence.
Stamp duty. A state tax on instruments; payable before or at execution (section 17, Indian Stamp Act, 1899); unstamped instruments are inadmissible until regularised (section 35).
Template. The approved standard form of a contract type.
Wet signature. A handwritten ink signature; still required for First Schedule documents.
Where Legatio fits. These are the terms you will meet in Legatio's intake, execution, dispatch and tracking screens; the definitions above are the legal and operational meanings behind them.
Position stated as of October 2026. General information, not legal advice.