Contract Analysis
Extracts and evaluates material provisions, risk allocations, and obligations across one or more contracts to support negotiation, execution, or remediation decisions.
Prerequisites
Before starting, collect:
- Contract document(s) — executed or draft; note which
- Client role — which party the analysis favors (or neutral)
- Jurisdiction — governing law if known; flag if absent
- Scope — full review, specific provisions, or multi-contract comparison
Workflow
1. Executive Summary
- Parties, effective date, term, governing law (1–2 sentences each)
- Top 3–5 critical risks requiring immediate attention
- Overall favorability: favorable / balanced / unfavorable
2. Key Provisions Matrix
For each provision, record section number, summary, risk level (High/Med/Low), and notes.
Provisions to evaluate:
- Term & Termination — cure periods, notice, convenience rights
- Payment Terms — timing, late fees, set-off rights
- Scope / Deliverables — ambiguity, change-order mechanics
- Indemnification — mutual vs. one-sided, carve-outs
- Limitation of Liability — cap amount, excluded damages
- Warranty / Disclaimer — express vs. implied, remedy limits
- Insurance — required types, minimums
- IP Ownership — work-for-hire, license-back, background IP
- Confidentiality — term, carve-outs, residuals clause
- Dispute Resolution — arb vs. litigation, venue, fee-shifting
- Auto-Renewal — notice window, opt-out mechanics
- Assignment / Change of Control — consent requirements
- Force Majeure — scope, notice, extended FM termination right
- Governing Law / Venue
3. Risk Matrix
For each issue found, record section, severity, likelihood, and recommended action.
Risk categories:
- Ambiguity — language supporting multiple interpretations
- Asymmetry — one-sided obligations or liability allocation
- Gaps — material matters left unaddressed
- Conflicts — internal inconsistencies between sections
- Unenforceability — provisions likely void under applicable law
4. Comparative Analysis (multi-contract only)
Table comparing key terms across agreements; flag deviations from market standard.
5. Prioritized Recommendations
Rank issues by priority (Critical → High → Moderate) with provision reference, issue description, and proposed fix for each.
Checks
- Cite exact section numbers and quote key language verbatim
- Flag auto-renewal clauses with short opt-out windows as high-priority regardless of other factors
- Note all cross-references to external documents, exhibits, or incorporated standards — treat as additional obligations
- For ambiguous provisions, state the full range of plausible interpretations and implications
- Mark
[VERIFY] on any statutory or case citations — do not assess enforceability under specific state law without verifying current precedent
- UCC Article 2 applies to goods; common law governs services — note if contract mixes both without specifying
- Flag non-compete, non-solicit, and liquidated damages clauses for separate enforceability review under applicable state law
1---2name: contract-analysis3description: Analyzes contracts to identify key terms, obligations, risks, and negotiation opportunities. Produces structured risk assessments with executive summary, provision review, risk matrix, and prioritized recommendations. Use when reviewing agreements before execution, during negotiation, at closing, or for compliance monitoring.4---5
6# Contract Analysis
7
8Extracts and evaluates material provisions, risk allocations, and obligations across one or more contracts to support negotiation, execution, or remediation decisions.
9
10## Prerequisites
11
12Before starting, collect:
13
141. **Contract document(s)** — executed or draft; note which
152. **Client role** — which party the analysis favors (or neutral)
163. **Jurisdiction** — governing law if known; flag if absent
174. **Scope** — full review, specific provisions, or multi-contract comparison
18
19## Workflow
20
21### 1. Executive Summary
22
23- Parties, effective date, term, governing law (1–2 sentences each)
24- Top 3–5 critical risks requiring immediate attention
25- Overall favorability: favorable / balanced / unfavorable
26
27### 2. Key Provisions Matrix
28
29For each provision, record section number, summary, risk level (High/Med/Low), and notes.
30
31Provisions to evaluate:
32- **Term & Termination** — cure periods, notice, convenience rights
33- **Payment Terms** — timing, late fees, set-off rights
34- **Scope / Deliverables** — ambiguity, change-order mechanics
35- **Indemnification** — mutual vs. one-sided, carve-outs
36- **Limitation of Liability** — cap amount, excluded damages
37- **Warranty / Disclaimer** — express vs. implied, remedy limits
38- **Insurance** — required types, minimums
39- **IP Ownership** — work-for-hire, license-back, background IP
40- **Confidentiality** — term, carve-outs, residuals clause
41- **Dispute Resolution** — arb vs. litigation, venue, fee-shifting
42- **Auto-Renewal** — notice window, opt-out mechanics
43- **Assignment / Change of Control** — consent requirements
44- **Force Majeure** — scope, notice, extended FM termination right
45- **Governing Law / Venue**
46
47### 3. Risk Matrix
48
49For each issue found, record section, severity, likelihood, and recommended action.
50
51Risk categories:
52- **Ambiguity** — language supporting multiple interpretations
53- **Asymmetry** — one-sided obligations or liability allocation
54- **Gaps** — material matters left unaddressed
55- **Conflicts** — internal inconsistencies between sections
56- **Unenforceability** — provisions likely void under applicable law
57
58### 4. Comparative Analysis *(multi-contract only)*
59
60Table comparing key terms across agreements; flag deviations from market standard.
61
62### 5. Prioritized Recommendations
63
64Rank issues by priority (Critical → High → Moderate) with provision reference, issue description, and proposed fix for each.
65
66## Checks
67
68- Cite exact section numbers and quote key language verbatim
69- Flag auto-renewal clauses with short opt-out windows as high-priority regardless of other factors
70- Note all cross-references to external documents, exhibits, or incorporated standards — treat as additional obligations
71- For ambiguous provisions, state the full range of plausible interpretations and implications
72- Mark `[VERIFY]` on any statutory or case citations — do not assess enforceability under specific state law without verifying current precedent
73- UCC Article 2 applies to goods; common law governs services — note if contract mixes both without specifying
74- Flag non-compete, non-solicit, and liquidated damages clauses for separate enforceability review under applicable state law
CaseMark