The Contract Administration module, specifically the Contract Types application, is designed for setting up templates and defaults for different kinds of contracts. Within this application, an administrator can use the "Contract Property Defaults" action to define default values for specific properties, such as whether early termination is allowed. When a user creates a new contract and selects that specific contract type, these predefined property values are automatically applied, ensuring consistency and streamlining the contract creation process.

A. Database Configuration: This application is used to modify the underlying data structure (e.g., adding attributes to objects), not to set business-level default values for application data.

B. Organizations: This application sets high-level, organization-wide defaults (e.g., currency, default storerooms), not defaults for specific properties within a contract type.

C. System Properties: This application manages global, technical configuration settings for the entire Maximo system, not business-specific defaults for individual applications like contracts.

1. IBM Maximo Manage 8.7 Documentation, Contract Types application: "You use the Contract Types application to create and manage contract types. ... You can also specify default properties for a contract type. When you create a contract and specify a contract type, the default properties are copied to the contract." This documentation explicitly mentions the "Contract Property Defaults" action within the application. (Source: IBM Documentation, Maximo Application Suite as a Service, Contract Types application, "Actions for contract types" section).

2. IBM Maximo Manage 8.7 Documentation, Creating contract types: "In the Contract Types application, you can create contract types to classify your contracts. ... From the More Actions menu, select Contract Property Defaults to specify the default properties for the selected contract type." This provides the exact steps to perform the action described in the question. (Source: IBM Documentation, Maximo Application Suite as a Service, Managing contracts, "Creating contract types" section).