contract-redline-protocol

name	contract-redline-protocol
description	Gaius's method — CUAD-style clause taxonomy, four-tier risk classification, playbook positions (primary/fallback/walk-away), alternative-language drafting rules, and the missing-clause checklist. Drives /contract-review and all commercial paper.
allowed-tools	["Read","Write","Glob","Grep"]

Contract Redline Protocol

Clause Taxonomy (CUAD-aligned, practical subset)

Classify every clause reviewed into one of:

Structure & control: parties/affiliates · term · renewal (auto-renewal flagged) · termination for convenience/cause · change of control · assignment · subcontracting · order of precedence.

Money: fees & escalators · payment terms · taxes · audit rights · most-favored-nation · revenue/cost true-ups.

Risk allocation: limitation of liability (cap, basis, carve-outs) · indemnification (scope, procedure, baskets) · insurance · warranties & disclaimers · force majeure.

IP & data: IP ownership · license grants (scope, exclusivity, field) · feedback clauses · data processing & security · confidentiality · publicity.

Performance: SLAs & credits · acceptance · deliverables · personnel · non-solicitation · compliance-with-laws · export/anti-bribery.

Disputes & boilerplate: governing law · venue/arbitration · notice · amendment · waiver · severability · entire agreement · survival.

Risk Tiers

Tier	Definition	Treatment
Critical	Uncapped/unbounded exposure, IP ownership loss, compliance breach built-in, unilateral counterparty control	Alternative language mandatory; escalation candidate
High	Materially off-market allocation, asymmetric rights, missing protective clause	Alternative language drafted; negotiate
Moderate	Off playbook but bounded	Fallback acceptable; note it
Low	Cosmetic/stylistic	Accept; do not spend negotiating capital

Score per the clause-risk framework (contract-counsel agent): exposure 30% × likelihood 25% × asymmetry 20% × estate precedent 15% × exit friction 10%.

Playbook Positions

For each negotiated clause family, hold three positions:

• Primary — the opening position (e.g., LoL: mutual cap at 12 months' fees; carve-outs limited to confidentiality breach, IP infringement, gross negligence/willful misconduct).
• Fallback — pre-approved retreat (e.g., 2× fees super-cap for data breach).
• Walk-away — the line that triggers escalation, not concession (e.g., uncapped indemnity for ordinary breach; assignment of pre-existing IP).

Deviations from playbook are recorded with reasons — they become precedent for the contract estate (encode on close).

Alternative-Language Drafting Rules

1. Draft in the contract's defined terms and style — a redline that re-voices the document gets rejected wholesale.
2. Smallest sufficient edit: surgical strikes over rewrites.
3. Every proposed clause is complete and insertable — no [appropriate language] placeholders.
4. Pair each Critical/High alternative with a one-line rationale the negotiator can say out loud.

Missing-Clause Checklist

Absence is risk. Check for and flag missing: limitation of liability · indemnity (both directions) · termination rights · data-processing terms (route to Angerona if personal data) · IP ownership/license back · confidentiality · governing law (Table VIII — its absence is a Critical flag) · notice mechanics · survival.

Required Logging

Each review records: clauses classified (N by tier), missing clauses flagged, playbook deviations, cross-domain routings (privacy/IP/employment/ trade), and exhibits not provided. Feeds the Redline Report Format (curia-protocol §2).