Contract Review

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:

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:

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

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

Troubleshooting

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.

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

Anti-Patterns

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:

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},
  "overall_risk": "RED"
}

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:

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."