# Legal Contract Review > - Skill: `frank-luongt/legal-contract-review-2` (Agent Skill) - Install (CLI): `npx skillmds@latest add frank-luongt/legal-contract-review-2` - Raw SKILL.md: https://api.skillmd.com/api/skills/frank-luongt/legal-contract-review-2/raw - Safety review: pending - Works with: Claude Code, Claude.ai, OpenAI Codex - Category: Coding & Dev Tools - Author: frank-luongt (https://skillmd.com/u/frank-luongt) - Updated: 2026-09-17 - Page: https://skillmd.com/skills/frank-luongt/legal-contract-review-2 --- --- name: legal-contract-review description: Review contracts for risk, extract key clauses, triage NDAs, and score compliance exposure. Use when evaluating vendor agreements, reviewing customer contracts, assessing NDA terms, or performing contract due diligence. tags: [legal, contracts, compliance, risk-analysis] --- # Legal Contract Review Structured contract analysis framework for extracting key terms, scoring risk, triaging NDAs, and identifying compliance exposure. Provides repeatable, evidence-based contract review — not legal advice. > **Disclaimer:** This skill provides structured analysis patterns and checklists. All output should be reviewed by qualified legal counsel before making binding decisions. ## Use this skill when - Reviewing vendor, customer, or partner agreements for risk - Triaging NDAs (mutual or unilateral) for quick risk classification - Extracting key commercial terms into a structured summary - Scoring compliance exposure across regulatory dimensions - Preparing contract summaries for executive or board review - Conducting due diligence on a portfolio of contracts ## Do not use this skill when - You need binding legal opinions (consult qualified counsel) - Drafting new contracts from scratch (use legal templates instead) - Reviewing highly regulated instruments (securities, insurance policies) requiring specialized expertise - The contract is in a language you cannot fully parse ## Instructions 1. **Identify contract type** — classify as vendor, customer, partnership, NDA, employment, or licensing agreement. 2. **Run the 10-Point Checklist** — extract each element into the Clause Extraction Template. 3. **Score compliance risk** — apply the Compliance Risk Score across all applicable dimensions. 4. **Check Red Flags** — scan for the 8 critical red flag patterns. 5. **For NDAs** — apply the NDA Triage Matrix for rapid classification. 6. **Generate output** — produce a Contract Summary Brief with risk heat map. --- ## 10-Point Contract Review Checklist Every contract review must extract and evaluate these 10 elements: | # | Element | What to Look For | Risk Level if Missing | |---|---------|------------------|----------------------| | 1 | **Parties** | Legal entity names, jurisdiction of incorporation, authorized signatories | High — wrong entity = unenforceable | | 2 | **Term & Renewal** | Start date, end date, auto-renewal clauses, notice periods for termination | Medium — auto-renewal traps | | 3 | **Termination Rights** | For cause, for convenience, cure periods, termination triggers | High — inability to exit | | 4 | **Liability Cap** | Aggregate cap, per-incident cap, carve-outs from cap | Critical — unlimited exposure | | 5 | **Indemnification** | Mutual vs. one-sided, scope of indemnified claims, defense obligations | High — asymmetric risk | | 6 | **IP & Ownership** | IP assignment, license grants, work-for-hire provisions, background IP protections | Critical — loss of core IP | | 7 | **Confidentiality** | Scope, duration, permitted disclosures, return/destruction obligations | Medium — over-broad scope | | 8 | **Governing Law & Disputes** | Jurisdiction, arbitration vs. litigation, venue, class action waiver | Medium — unfavorable venue | | 9 | **Data & Privacy** | Data processing terms, DPA requirements, breach notification, data residency | High — regulatory exposure | | 10 | **Force Majeure** | Defined events, notice requirements, performance relief, termination rights | Low — unless critical supply chain | --- ## Clause Extraction Template Use this structure to summarize any contract: ```markdown ## Contract Summary **Contract Type:** [Vendor/Customer/NDA/Partnership/Employment/License] **Parties:** [Party A] ↔ [Party B] **Effective Date:** [YYYY-MM-DD] **Term:** [Duration] | **Auto-Renewal:** [Yes/No — notice period] **Governing Law:** [Jurisdiction] ### Key Commercial Terms | Term | Value | Notes | |------|-------|-------| | Contract Value | $ | Annual/total | | Payment Terms | Net [X] days | | | Liability Cap | $ or [X]x fees | Carve-outs: [list] | | Termination Notice | [X] days | For convenience / for cause | ### Risk Summary | Risk Area | Score (1-5) | Key Finding | |-----------|-------------|-------------| | Financial Exposure | | | | IP Risk | | | | Compliance Risk | | | | Operational Risk | | | | **Overall Risk** | **[avg]** | **[summary]** | ``` --- ## NDA Triage Matrix Rapid classification for NDAs — takes 10-15 minutes per NDA: | Dimension | Green (Low Risk) | Yellow (Review) | Red (Escalate) | |-----------|-----------------|-----------------|----------------| | **Type** | Mutual | Unilateral (we disclose) | Unilateral (we receive only) | | **Scope** | Clearly defined to project | Broad but reasonable | "All information" without limits | | **Duration** | 1-3 years | 3-5 years | Perpetual or >5 years | | **Non-compete** | None | Narrow (specific market, <1 year) | Broad market, >1 year | | **Residuals** | Residuals clause included | Silent on residuals | Explicitly excludes residuals | | **Remedies** | Mutual remedies | Injunctive relief (standard) | Liquidated damages or penalties | **Triage Decision:** - All Green → **Sign** (standard terms) - Any Yellow → **Review** (negotiate specific clauses) - Any Red → **Escalate** to legal counsel before signing --- ## Compliance Risk Score (0-100) Weighted scoring across regulatory dimensions: | Dimension | Weight | Score (0-10) | Weighted | |-----------|--------|-------------|----------| | **Data Privacy** (GDPR, CCPA, PDPA) | 25% | | | | **Export Controls** (ITAR, EAR) | 15% | | | | **Anti-Bribery** (FCPA, UK Bribery Act) | 15% | | | | **Sanctions** (OFAC, EU sanctions) | 15% | | | | **Industry-Specific** (HIPAA, PCI-DSS, SOX) | 20% | | | | **Employment Law** (non-compete, IP assignment) | 10% | | | | **Total** | 100% | | **/100** | **Risk Bands:** - 0-25: Low risk — proceed with standard review - 26-50: Moderate risk — require compliance team sign-off - 51-75: High risk — require legal counsel review - 76-100: Critical risk — escalate to CLO / outside counsel --- ## Red Flag Checklist These patterns require immediate escalation: | # | Red Flag | Why It Matters | |---|----------|---------------| | 1 | **Unlimited liability** | No cap on financial exposure | | 2 | **One-sided indemnification** | Only your company bears risk | | 3 | **Auto-renewal without notice** | Locked into unfavorable terms | | 4 | **Broad IP assignment** | Transfers IP beyond project scope | | 5 | **Non-compete overreach** | Restricts future business operations | | 6 | **Unilateral amendment rights** | Counterparty can change terms without consent | | 7 | **No termination for convenience** | Cannot exit without cause | | 8 | **Jurisdiction in counterparty's home country** | Litigation disadvantage | If **any** red flag is present, do not approve without legal counsel review. --- ## Common Mistakes - **Confusing liability cap with indemnification** — a liability cap limits total exposure; indemnification defines who pays for specific losses. Both must be reviewed independently. - **Ignoring change-of-control clauses** — acquisition or merger can trigger termination or consent requirements. - **Skipping data processing addendums** — GDPR/CCPA require explicit DPA terms for any contract involving personal data processing. - **Overlooking survival clauses** — confidentiality, IP, and indemnification often survive termination. Check duration. - **Accepting "standard terms"** — no contract is truly standard. Always review, even boilerplate. --- ## Additional Resources - Related skill: `stakeholder-map` — for identifying contract stakeholders and approval workflows - IACCM (World Commerce & Contracting) — contract management best practices - Legal design patterns for technology agreements