Contract types in UCM will define what fields and field groups appear when a user is entering a new contract and contract data.
The Contract Type can also define what workflow is assigned to new contracts by default. If all Service Agreements over 10K get a specific 10K workflow, Contract Type Administration is where you would assign it.
When creating a milestone rule, you add your milestones to contracts by using the Contract Type.
You also have the ability to restrict user visibility to particular Contract Types and restrict their ability to enter new contracts of any Type in your system.
Like most areas in UCM, you can view your contract types in a grid:
Like any UCM grid you can add or remove columns, change the records per page, perform a search and view other pages of your Types using the arrows at the lower left. On the lower right you will see how many records are displayed out of the total.