In the template tab you will specify a name for the template, which document to use as starting point for creating a new template, and what form to use to fill the document with. If you give the new template the same name as an existing one you are asked if you want to use the existing one.
Full path and name of the template. If there already is a template with that name.
You may already have the text of a contract, or there may already be a template that has the address merge fields in place. In that case specify a document or template you want to base the template on.
If the template already exists you will be asked if you want to use the existing one. If not, you will be asked if you want to overwrite it. If another process uses this template, you will be informed about it.