Contract Review

Contract Review

This skill provides frameworks and templates for contract review, drafting, and negotiation.

Contract Review Checklist

When reviewing any contract, check these key areas:

1. Parties

• Correct legal entity names and addresses
• Authorized signatories identified
• Capacity to enter into contract verified

2. Terms and Conditions

• Scope of services/products clearly defined
• Payment terms (amount, timing, method) specified
• Term and termination provisions reasonable
• Renewal/auto-renewal clauses identified
• Performance standards and SLAs defined

3. Liability and Indemnification

• Limitation of liability caps acceptable
• Indemnification clauses balanced (not one-sided)
• Insurance requirements specified
• Exclusions from liability reasonable

4. Intellectual Property

• IP ownership clearly allocated
• License grants appropriate for use case
• Background IP protected
• Foreground IP ownership addressed
• Open source compliance addressed

5. Confidentiality

• Confidential information defined
• Exceptions to confidentiality reasonable
• Duration of confidentiality obligations
• Return/destruction provisions included

6. Data Protection

• Data processing agreement if applicable
• GDPR/CCPA compliance addressed
• Data security requirements specified
• Data breach notification procedures

7. Dispute Resolution

• Governing law specified
• Jurisdiction/venue reasonable
• Dispute resolution mechanism (arbitration, litigation)
• Class action waiver if applicable

8. Termination

• Termination rights balanced
• Notice periods reasonable
• Survival clauses identified
• Exit obligations clear

NDA Template

# Mutual Non-Disclosure Agreement

**Parties**: [Company A] and [Company B]

**Effective Date**: [Date]

**Purpose**: [Brief description of purpose]

## 1. Definition of Confidential Information
"Confidential Information" means all non-public, proprietary, or confidential information disclosed by one party to the other, including but not limited to:
- Business plans, strategies, and financial information
- Technical data, know-how, and trade secrets
- Customer lists and marketing information
- Any information marked as confidential

**Exclusions**:
- Information publicly available
- Information independently developed
- Information rightfully received from third parties
- Information required to be disclosed by law

## 2. Obligations
Each party agrees to:
- Hold Confidential Information in strict confidence
- Use Confidential Information solely for the stated purpose
- Not disclose Confidential Information to third parties without prior written consent
- Take reasonable precautions to protect Confidential Information

## 3. Term
This Agreement shall remain in effect for [X] years from the Effective Date, or until terminated by mutual written consent.

## 4. Return of Materials
Upon termination, each party shall return or destroy all Confidential Information and certify destruction in writing.

## 5. Governing Law
This Agreement shall be governed by the laws of [Jurisdiction].

SaaS Agreement Key Terms Checklist

For Software-as-a-Service agreements, ensure these terms are addressed:

• Service Description: Clear description of SaaS offering and features
• Access Rights: Number of users, seats, or usage limits
• Service Levels: Uptime guarantees, response times, support levels
• Data Ownership: Customer owns their data, provider has limited use rights
• Data Security: Security standards, encryption, access controls
• Data Portability: Export capabilities, data format standards
• Pricing: Subscription fees, payment terms, price changes
• Term: Initial term, renewal terms, auto-renewal provisions
• Termination: Termination rights, notice periods, data return
• IP Rights: Provider owns platform IP, customer owns their data/content
• Limitation of Liability: Reasonable caps, exclusions
• Warranties: Service warranties, disclaimers
• Support: Support levels, response times, maintenance windows

Vendor Contract Evaluation Template

# Vendor Contract Evaluation: [Vendor Name]

**Contract Type**: [Service Agreement / Software License / Purchase Agreement]
**Date**: [Date]
**Reviewer**: [Name]

## Business Context
- **Purpose**: [Why are we entering this contract?]
- **Value**: [Expected business value]
- **Risk Level**: [Low / Medium / High]

## Key Terms Summary
- **Term**: [Duration]
- **Pricing**: [Cost structure]
- [ ] Pricing acceptable
- [ ] Payment terms reasonable

## Risk Assessment
- **Liability Cap**: [Amount or unlimited]
- [ ] Liability cap acceptable
- **Indemnification**: [One-way / Mutual / None]
- [ ] Indemnification balanced
- **Termination Rights**: [Termination for convenience / cause only]
- [ ] Termination rights acceptable

## Compliance
- [ ] Data protection requirements met
- [ ] IP ownership clear
- [ ] Confidentiality provisions adequate
- [ ] Regulatory compliance addressed

## Recommendations
- [ ] **Accept** — Contract is acceptable as-is
- [ ] **Negotiate** — Request changes to [specific terms]
- [ ] **Reject** — Contract terms unacceptable

## Action Items
- [ ] Redline contract with proposed changes
- [ ] Coordinate with Finance on pricing
- [ ] Coordinate with CTO on technical terms
- [ ] Send to vendor for negotiation

Contract Summary Template (Non-Legal Stakeholders)

# Contract Summary: [Contract Name]

**Parties**: [Company] and [Counterparty]
**Type**: [Vendor Agreement / Customer Agreement / Partnership]
**Status**: [Draft / Under Negotiation / Executed]

## What This Contract Does
[Plain language description of the contract's purpose and key obligations]

## Key Terms (Plain English)
- **Duration**: [How long the contract lasts]
- **Cost**: [Pricing structure in simple terms]
- **What We Get**: [Benefits/obligations for our company]
- **What We Give**: [Our obligations/deliverables]
- **Termination**: [How either party can end the contract]

## Risks & Protections
- **Main Risks**: [Key risks identified]
- **How We're Protected**: [Protections in place]

## Next Steps
- [ ] [Action item 1]
- [ ] [Action item 2]
- [ ] [Action item 3]

## Questions?
Contact Legal Counsel for detailed review or questions.

Redlining Best Practices

When redlining contracts:

1. Use Track Changes: Enable change tracking in Word or similar tools
2. Add Comments: Explain the reason for each change
3. Prioritize Changes: Mark changes as "Must Have" vs. "Nice to Have"
4. Group Related Changes: Organize changes by section
5. Provide Alternatives: When rejecting a clause, propose alternative language
6. Coordinate with Stakeholders: Get input from Finance, CTO, HR as needed

Contract Repository Organization

Organize executed contracts in a structured repository:

contracts/
├── vendor/
│   ├── [Vendor Name]/
│   │   ├── [Contract Name] - [Date].pdf
│   │   └── metadata.yaml
├── customer/
│   ├── [Customer Name]/
│   │   ├── [Contract Name] - [Date].pdf
│   │   └── metadata.yaml
├── employment/
│   ├── [Employee Name]/
│   │   ├── [Contract Type] - [Date].pdf
│   │   └── metadata.yaml
└── templates/
    ├── nda-template.md
    ├── saas-agreement-template.md
    └── vendor-agreement-template.md

Metadata should include: parties, type, execution date, expiration date, key terms summary, renewal dates.