Update table column with same auto-increment value, via T-SQL stored procedure

Good Evening to every one,
I have a table 'Contracts' as we can see in the picture below (I exported my data on An Excel Spreadsheet). Table's primary key is 'ID' column.
I am trying to create a stored procedure (i.e. updContractNum), through which I am going to update the 'Contract_Num' column, in every row where the values on Property_Code, Customer, Cust_Category and Amnt ARE EQUAL, as we can see in the schema above.
The value of Contract_Num is a combination of varchar and auto_increment (integer). For example, the next value on 'Contract number' column will be 'CN0005' for the combination of 11032-14503-02-1450,00
I' m trying to use CURSORS for this update but I am new in using cursors and I am stuck in whole process. I atttach my code below:
CREATE PROCEDURE updContractNum
AS
--declare the variables
DECLARE @CONTRACT_NUM VARCHAR(10); -- Contract Number. The value that will be updated on the table.
DECLARE @CONTRACT INTEGER; -- Contract number, the auto increment section on contract number
DECLARE @CONTR_ROW VARCHAR(200); -- Contract row. The row elements that will be using on cursor
DECLARE CONTRACT_CURSOR CURSOR FOR -- Get the necessary fields from table
SELECT PROPERTY_CODE, CUSTOMER, CUST_CATEGORY, AMNT
FROM CONTRACTS;
OPEN CONTRACT_CURSOR -- open a cursor
FETCH NEXT FROM CONTRACT_CURSOR INTO @CONTR_ROW
WHILE @@FETCH_STATUS = 0 -- execute the update, for every row of the tabl
BEGIN
--update Contract_Num, using the format coding : contract_number = 'CN' + 0001
UPDATE CONTRACTS
SET CONTRACT_NUM = 'CN'+@CONTRACT_NUM+1
END
CLOSE CONTRACT_CURSOR
Thank you in advance!

You dont need cursor
You can simply use an update statement like this
UPDATE t
SET Contract_Num = 'CN' + RIGHT('00000' + CAST(Rnk AS varchar(5)),5)
FROM
SELECT Contract_Num,
DENSE_RANK() OVER (ORDER BY Property_Code,Customer,Cust_category,Amnt) AS Rnk
FROM table
)t
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