contract-review

What this skill does

# Contract Review

Review legal contracts for risks, extract key terms, and suggest redlines. Built on the CUAD dataset (41 risk categories), ContractEval benchmarks, and LegalBench.

> **Disclaimer:** This skill provides informational analysis only. It is not legal advice. Material terms should be reviewed by qualified legal counsel before signing.

## 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)

---

## Output Format

Use **markdown** for readable, scannable output.

---

### Example Output

```markdown
# 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" to "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 | OK | Customer owns all customer data |
| IP Rights | OK | Clear separation, no broad assignment |
| Confidentiality | OK | Mutual, 3-year term, standard exceptions |
| Governing Law | OK | 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 |
| Permitted disclosure | "Representatives" defined? Flow-down required? |
| Residuals clause | Can use general knowledge retained in memory? |
| Non-solicitation | Employees protected? |
| Standstill | Prevents hostile acquisition actions? |
| No-contact | Customers, suppliers, employees protected? |
| Return/destruction | Certification required? |
| Public announcement | Prohibits disclosure of discussions? |
| Compelled disclosure | Notice required? Time to seek protective order? |
| Injunctive relief | Pre-agreed specific performance? Bond waiver? |

### SaaS/MSA Checklist

| Category | Check For |
|----------|-----------|
| Liability cap | 12+ months = standard |
| Uptime SLA | 99.9% with credits = standard |
| Suspension rights | Unilateral? Notice required? |
| Data ownership | Customer owns customer data? |
| Data export | Format, duration, cost on termination? |
| Price increases | Capped? Notice period? |
| Auto-renewal notice | 90+ days = good, <60 = risk |
| Termination | Mutual for convenience? Cure period for cause? |
| Subprocessors | Notice of changes? Approval rights? |
| Insurance | Vendor carries E&O, cyber? |

### Payment/Merchant Agreement Checklist

| Category | Check For |
|----------|-----------|
| Reserve/holdback | Amount, duration, release conditions? |
| Chargeback liability | Capped? Fraud protection? |
| Network rules | Incorporated by reference? Access provided? |
| Auto-debit authority | Notice before debits? |
| Settlement timing | When do you receive funds? |
| Volume commitments | Realistic? Penalty