contract-review

name	contract-review
description	Contract review assistant analyzing agreements against playbooks. GREEN/YELLOW/RED severity. Use when reviewing vendor contracts, SaaS agreements, service agreements, or generating redline suggestions.
license	MIT + Commons Clause
metadata	{"version":"1.0.0","author":"The Glass Room","category":"legal","domain":"contract-analysis","updated":"2026-04-10T00:00:00.000Z","tags":["contract-review","redline","negotiation","risk-assessment","legal"]}

⚠️ EXPERIMENTAL — This skill is provided for educational and informational purposes only. It does NOT constitute legal advice. All responsibility for usage rests with the user. Consult qualified legal professionals before acting on any output.

Contract Review

Automated contract review tools that analyze agreements against organizational playbooks, classify clause risk with GREEN/YELLOW/RED severity, and generate prioritized redline suggestions with fallback positions.

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Table of Contents

• Tools
  • Contract Analyzer
  • Redline Generator
• Reference Guides
• Workflows
  • Standard Contract Review
  • Rapid Risk Triage
• Troubleshooting
• Success Criteria
• Scope & Limitations
• Anti-Patterns
• Tool Reference

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Tools

Contract Analyzer

Analyzes contract text files for clause types, missing standard clauses, and risk indicators.

# Analyze a contract file
python scripts/contract_analyzer.py contract.txt

# JSON output for pipeline integration
python scripts/contract_analyzer.py agreement.md --json

# Save analysis to file
python scripts/contract_analyzer.py contract.txt --output analysis.json --json

What it detects:

• Clause types: Limitation of Liability, Indemnification, IP, Data Protection, Term & Termination, Governing Law, Reps & Warranties, Force Majeure, Confidentiality, Payment Terms
• Missing standard clauses against a baseline checklist
• Risk indicators: uncapped liability, perpetual terms, unilateral indemnification, automatic renewal without opt-out, broad IP assignment, unlimited audit rights

Risk Classification:

Level	Meaning	Action
RED	Deal-breaker risk	Must negotiate before signing
YELLOW	Material concern	Should negotiate, may accept with mitigation
GREEN	Standard or favorable	Acceptable as-is

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Redline Generator

Takes contract analysis JSON and generates formatted redline suggestions with priority tiers.

# Generate redlines from analysis
python scripts/contract_analyzer.py contract.txt --json --output analysis.json
python scripts/redline_generator.py analysis.json

# JSON output
python scripts/redline_generator.py analysis.json --json

# Save redlines to file
python scripts/redline_generator.py analysis.json --output redlines.md

Output includes:

• Priority tier (Must-Have / Should-Have / Nice-to-Have)
• Preferred redline language
• Rationale for each change
• Fallback position if counterparty rejects
• Negotiation notes

Priority Tiers:

Tier	Label	Description
1	Must-Have	Deal-breakers; walk away if rejected
2	Should-Have	Strong preferences; push hard but negotiable
3	Nice-to-Have	Concession candidates; trade for Tier 1-2 wins

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Reference Guides

Clause Analysis Guide

references/clause_analysis_guide.md

Deep reference covering 8+ clause types:

• Limitation of Liability (cap types, carveouts, consequential damages)
• Indemnification (mutuality, scope, procedure)
• IP (ownership, licenses, work-for-hire, feedback)
• Data Protection (DPA, sub-processors, breach notification, transfers)
• Term & Termination (auto-renewal, cure periods, transition)
• Governing Law (jurisdiction, arbitration, jury waiver)
• Representations & Warranties
• Force Majeure

Negotiation Playbook

references/negotiation_playbook.md

Negotiation priority framework with:

• Tier 1 deal-breakers and walkaway criteria
• Tier 2 strong preferences with trading strategies
• Tier 3 concession candidates for strategic give-backs
• Redline format template
• Common negotiation pitfalls

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Workflows

Standard Contract Review

1. Ingest -- Save contract as .txt or .md file
2. Analyze -- Run contract_analyzer.py with --json flag
3. Review findings -- Check RED items first, then YELLOW
4. Generate redlines -- Run redline_generator.py on analysis output
5. Prioritize -- Focus on Must-Have redlines, prepare fallbacks for Should-Have
6. Send to counsel -- Attach analysis and redlines for final review

Rapid Risk Triage

1. Run contract_analyzer.py in text mode for quick scan
2. If any RED findings: escalate immediately to legal counsel
3. If YELLOW only: schedule review within 48 hours
4. If all GREEN: proceed with standard approval workflow

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Troubleshooting

Problem	Cause	Solution
Error: File not found	Contract file path is incorrect or file does not exist	Verify the file path; use absolute paths if relative paths fail
No clauses detected	Contract uses unusual formatting or non-standard clause headers	Ensure contract is plain text; strip PDF artifacts before analysis
All clauses marked GREEN	Contract is genuinely favorable, or text extraction missed key sections	Manually verify critical clauses (liability, indemnification, IP) are present in the input file
Redline generator produces empty output	Analysis JSON has no YELLOW or RED findings	Confirm analysis JSON is valid; re-run analyzer if contract was updated
False positive on uncapped liability	Liability section references a cap elsewhere in the document	Review the full Limitation of Liability section; the tool scans for cap keywords within each clause boundary
Missing clause false positive	Clause exists but uses non-standard heading (e.g., "Damages Cap" instead of "Limitation of Liability")	The analyzer checks multiple heading variants; add custom aliases if your organization uses unique terminology

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Success Criteria

• Contract review time reduced by 50%: Automated clause identification and risk classification eliminates manual scanning.
• Zero missed RED-severity clauses: Every uncapped liability, unilateral indemnification, and broad IP assignment is flagged before human review.
• Redline generation under 2 minutes: From analysis JSON to prioritized redline document.
• Consistent risk classification across reviewers: GREEN/YELLOW/RED framework eliminates subjective assessments.
• 100% of contracts reviewed with structured output: Every agreement gets a clause inventory and risk report before negotiation begins.
• Negotiation success rate above 80% on Must-Have items: Tier 1 redlines with prepared fallbacks improve negotiation outcomes.

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Scope & Limitations

Covers:

• Static text analysis of contract clauses using keyword and pattern matching
• Clause type identification across 10+ standard commercial contract categories
• Risk indicator detection: uncapped liability, perpetual terms, unilateral obligations, auto-renewal traps
• Missing clause detection against a standard commercial contract baseline
• Prioritized redline generation with fallback positions

Does NOT cover:

• Legal advice -- this tool supports review, it does not replace qualified legal counsel
• Jurisdiction-specific compliance -- use ra-qm-team skills for regulatory compliance (GDPR, SOC 2, etc.)
• Contract execution or e-signature workflows -- out of scope
• Multi-document cross-reference (e.g., checking SOW against MSA) -- analyze each document separately
• Non-English contracts -- pattern matching is English-language only

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Anti-Patterns

Anti-Pattern	Why It Fails	Better Approach
Signing contracts with only GREEN findings and no human review	Automated analysis cannot catch context-dependent risks, ambiguous language, or business-specific concerns	Always have qualified counsel review before execution, even on all-GREEN contracts
Treating all RED findings as equal	Some RED items are structural deal-breakers while others may be resolvable with a single word change	Use the redline generator to assess effort and fallback positions for each RED finding
Skipping the redline fallback positions	Entering negotiation with only preferred positions leaves no room for strategic concession	Always prepare Must-Have fallbacks and identify Nice-to-Have items to trade away
Running analysis on poorly extracted text	PDF-to-text conversion artifacts break clause detection patterns	Clean the text file before analysis: remove headers, footers, page numbers, and formatting artifacts

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Tool Reference

contract_analyzer.py

Purpose: Analyzes contract text files for clause types, identifies missing standard clauses, and flags risk indicators with GREEN/YELLOW/RED severity classification.

Usage:

python scripts/contract_analyzer.py <contract_file> [--json] [--output FILE]

Flags:

Flag	Short	Default	Description
contract_file	(positional)		Path to contract text file (.txt or .md)
--json		off	Output in JSON format
--output	-o	(stdout)	Write output to file

Example Output (JSON):

{
  "file": "vendor_agreement.txt",
  "clauses_found": [
    {
      "type": "limitation_of_liability",
      "severity": "RED",
      "text_snippet": "...liability shall not be limited...",
      "risk_flags": ["uncapped_liability"],
      "notes": "No liability cap found; uncapped exposure"
    }
  ],
  "missing_clauses": ["force_majeure", "data_protection"],
  "risk_summary": {"RED": 2, "YELLOW": 3, "GREEN": 5},
   

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redline_generator.py

Purpose: Takes contract analysis JSON and generates formatted redline suggestions with priority tiers, rationale, and fallback positions.

Usage:

python scripts/redline_generator.py <analysis_json> [--json] [--output FILE]

Flags:

Flag	Short	Default	Description
analysis_json	(positional)		Path to contract analysis JSON file
--json		off	Output in JSON format
--output	-o	(stdout)	Write output to file

Example Output:

REDLINE SUGGESTIONS
===================

[MUST-HAVE] Limitation of Liability — Uncapped Liability
  Severity: RED
  Preferred: "Aggregate liability shall not exceed 12 months of fees paid."
  Rationale: Uncapped liability creates unlimited financial exposure.
  Fallback: "Aggregate liability shall not exceed 24 months of fees paid."

[SHOULD-HAVE] Indemnification — Unilateral Indemnification
  Severity: YELLOW
  Preferred: "Each party shall indemnify the other for breaches of this Agreement."
  Rationale: Mutual indemnification balances risk between parties.
  Fallback: "Indemnification obligations shall be subject to the liability cap."