Review legal contracts, NDAs, employment agreements, SaaS terms, and M&A documents. Identifies unfavorable terms, suggests redlines, and compares to market standards. Use for contract analysis, due diligence, or negotiation prep.
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Review legal contracts, NDAs, employment agreements, SaaS terms, and M&A documents. Identifies unfavorable terms, suggests redlines, and compares to market standards. Use for contract analysis, due diligence, or negotiation prep.
version
3.0.0
scope
public
Contract Review Skill
Review legal contracts for risks, extract key terms, and suggest redlines. Built on the CUAD dataset (41 risk categories), ContractEval benchmarks, and LegalBench.
When to Activate
User mentions "review contract", "analyze agreement", "check this contract"
User uploads or references a PDF/DOCX legal document
User asks about specific clauses, risks, or terms
Step 1: Pre-Review Checklist
Before analyzing content, verify document completeness:
Blank fields: Flag any "$X", "TBD", "[amount]", "____" placeholders
Missing exhibits: List all referenced schedules/exhibits and note which are missing
Signature status: Draft or already executed?
All pages present: Check for truncation or missing sections
If blank fields or missing exhibits exist, flag prominently in output header.
Step 2: Identify Document Type & User Position
Ask if unclear: "Which party are you? (customer, vendor, buyer, seller, licensor, licensee, receiving party, disclosing party)"
This affects what's "risky":
Customer reviewing vendor agreement → flag vendor-favorable terms
Vendor reviewing own template → flag customer-favorable terms
Buyer in M&A → flag seller-favorable terms
Seller in M&A → flag buyer-favorable terms
Receiving party in NDA → flag disclosing party-favorable terms
Assess power dynamic:
Startup vs. large enterprise? (limited negotiating leverage)
Standard form vs. negotiated? (some terms non-negotiable)
Regulated industry? (some terms legally required)
Step 3: Redline Approach by Context
If document is a draft (pre-execution): Provide specific redline language AND a fallback/compromise for each flagged issue.
Format per issue:
Redline: Exact replacement text
Fallback: Minimum acceptable compromise if counterparty resists
If document is already executed: Shift from redlines to remediation. Do NOT suggest redlines. Instead provide:
Trigger: Conditions that would require escalation (breach, renewal, assignment event)
Redline patterns by document type:
Type
Common Redline
Fallback
NDA (receiving)
Narrow CI definition, add standard exceptions
Accept broader definition with explicit carve-outs
NDA (disclosing)
Remove residuals clause
Narrow residuals to "general knowledge only"
SaaS (customer)
Liability cap 3mo → 12mo
Accept 6mo minimum
SaaS (vendor)
Mutual termination → vendor-only or 30-day notice
Accept mutual but extend notice to 60 days
M&A (buyer)
Earnout: add objective metrics + anti-sandbagging
Add audit rights as minimum
M&A (seller)
Escrow >15%: reduce to 10%, shorten to 12mo
Accept 12.5% for 12 months
Broker
Perpetual tail → 18-month tail
Accept 24 months with named-buyer carve-out
Payment
Immediate suspension → 5-day notice + cure
Accept 48-hour notice minimum
Output Format
Use markdown for readable, scannable output. Do NOT use XML tags.
Example Output
# Contract Review: [Document Name]**Document Type:** SaaS Subscription Agreement
**Your Position:** Customer
**Counterparty:** Acme Software Inc.
**Risk Level:** 🟡 Medium
**Document Status:** Draft / Executed on [date]
## ⚠️ Pre-Signing Alerts-**Blank field:** Fee amount in Section 4.1 is "$____"
-**Missing exhibit:** Exhibit B (SLA) referenced but not attached
## Executive Summary
Standard vendor agreement with some one-sided terms. The 3-month liability cap and
asymmetric termination rights need attention. Data ownership is clear.
---
## Key Terms
| Term | Value | Location |
|------|-------|----------|
| Initial Term | 12 months | Section 8.1 |
| Auto-Renewal | 12-month periods, 60-day notice | Section 8.2 |
| Liability Cap | 3 months' fees | Section 10.2 |
| Governing Law | Delaware | Section 12.1 |
---
## Red Flags (Quick Scan)
| Flag | Found | Location |
|------|-------|----------|
| Liability cap < 6 months | ⚠️ Yes | Section 10.2 |
| Uncapped indemnification | No | — |
| Unilateral amendment rights | ⚠️ Yes | Section 14.1 |
| No termination for convenience | No | — |
| Perpetual obligations | No | — |
| Offshore jurisdiction | No | — |
---
## Risk Analysis### 🔴 Critical**Limitation of Liability** (Section 10.2)
> "Liability shall not exceed fees paid in the preceding three (3) months"-**Issue:** 3-month cap is below market standard (typically 12 months)
-**Risk:** For $120K annual contract, liability capped at $30K
-**Market Standard:** 12 months' fees
-**Negotiability:** Medium — most vendors accept 6-12 months
-**Redline:** Change "three (3) months" → "twelve (12) months"
-**Fallback:** Accept 6 months as compromise
---
### 🟡 Important**Termination for Convenience** (Section 8.5)
> "Vendor may terminate for any reason upon 30 days notice"-**Issue:** One-sided; customer lacks equivalent right
-**Market Standard:** Mutual termination rights
-**Negotiability:** High — reasonable ask
-**Redline:** Add "Either party may terminate..." or change to "90 days"
---
### 🟢 Reviewed & Acceptable
| Category | Status | Notes |
|----------|--------|-------|
| Data Ownership | ✓ | Customer owns all customer data |
| IP Rights | ✓ | Clear separation, no broad assignment |
| Confidentiality | ✓ | Mutual, 3-year term, standard exceptions |
| Governing Law | ✓ | Delaware — neutral for commercial |
---
## Missing Provisions
| Provision | Priority | Why It Matters |
|-----------|----------|----------------|
| Data Export Rights | Critical | No guaranteed way to get data out on termination |
| SLA Credits | Important | 99.9% uptime stated but no remedy for breach |
| Price Increase Cap | Important | Renewal pricing uncapped |
**Suggested language for Data Export:**> "Upon termination, Vendor shall make Customer Data available for export in CSV or JSON format for 90 days at no additional charge."
---
## Internal Consistency Issues- ⚠️ Section 5.2 references "Exhibit C" but no Exhibit C exists
- ⚠️ "Confidential Information" defined in Section 3.1 but used lowercase in Section 7
---
## Negotiation Priority
| # | Issue | Ask | Negotiability |
|---|-------|-----|---------------|
| 1 | Liability cap | 12 months | Medium |
| 2 | Termination rights | Mutual | High |
| 3 | Data export | Add provision | High |
| 4 | Price cap | 5% annual max | Medium |
---
*This review is for informational purposes only. Material terms should be reviewed by qualified legal counsel.*
Red Flags Quick Scan
Check these danger signs FIRST before deep analysis:
Red Flag
Why It Matters
Liability cap < 6 months
Inadequate protection
Uncapped indemnification
Unlimited exposure
"As-is" with no warranty
No recourse for defects
Unilateral suspension without notice
Service can vanish
Unilateral amendment rights
Terms can change
No termination for convenience
Locked in
Perpetual obligations (tails, non-competes)
Indefinite exposure
Offshore jurisdiction (BVI, Cayman)
Expensive to enforce
Pre-signed conflict waivers
No recourse for conflicts
"Sole discretion" language favoring counterparty
No objective standard
Class action waiver + mandatory arbitration
Limited remedies
Asymmetric assignment rights
They can assign, you can't
Document Type Checklists
NDA Checklist
Category
Check For
Direction
One-way or mutual?
Definition scope
"All information" too broad? Standard exceptions?
Term
2 years short, 3-5 typical, indefinite for trade secrets
