Contract Redline
Flag risk in a contract draft — this is a first-pass triage, not a legal opinion.
Clauses to always check
- Liability cap — present? Uncapped liability is a flag.
- Indemnification — mutual, or one-sided against your company?
- Auto-renewal — present, and if so, what's the opt-out notice window?
- Termination for convenience — can either party exit, and on what notice?
- Data handling / confidentiality — does it meet your company's minimum data-handling terms?
- Governing law / venue — flag anything outside the company's standard jurisdiction.
Process
- Go clause by clause; don't skip boilerplate — that's where risk hides.
- For each flagged clause, quote the exact language, state the risk in one sentence, and suggest fallback language.
- Explicitly list which of the standard clauses above are missing from the draft, not just which are risky.
- End with a one-line overall risk rating (low/medium/high) and a note that this is a first-pass flag for legal review, not a substitute for it.