Contract Reviewer

Contract Reviewer

Overview

This skill provides a structured methodology for reviewing business contracts from a risk and negotiation perspective. It helps identify unfavorable terms, quantify risks, and prepare negotiation strategies.

Important Disclaimer: This skill provides business-focused contract analysis, NOT legal advice. Always consult qualified legal counsel for binding decisions and jurisdiction-specific requirements.

When to Use This Skill

• Reviewing vendor contracts before signing
• Evaluating NDAs and confidentiality agreements
• Analyzing Master Service Agreements (MSAs)
• Reviewing Service Level Agreements (SLAs)
• Evaluating software license terms
• Preparing for contract negotiations
• Assessing renewal terms and conditions
• Conducting due diligence on partner agreements

Prerequisites

• Python 3.9+: Required for running analysis scripts
• PyPDF2 (optional): Install with pip install PyPDF2 for PDF document support
• Contract Document: Text file (.txt, .md) or PDF file (.pdf) containing the contract
• No Legal Advice: This skill provides business analysis; always consult legal counsel for binding decisions

Supported Contract Types

Core Capabilities

1. Initial Triage: Quick assessment to determine review depth needed
2. Clause-by-Clause Analysis: Systematic review of all contract provisions
3. Risk Assessment: Quantified risk scoring with prioritization
4. Negotiation Preparation: Identify leverage points and alternative language
5. Final Report: Executive summary with actionable recommendations

Workflow 1: Initial Triage

Purpose: Quickly assess the contract and determine the appropriate review depth. Duration: 15-30 minutes

Step 1.1: Contract Classification

Identify the contract type and gather basic information:

## Contract Classification

**Contract Type**: [NDA / MSA / SOW / SLA / License / Other: ___]
**Contract Title**:
**Parties**:
  - Party A (typically our organization):
  - Party B (counterparty):
**Effective Date**:
**Term**:
**Value/Amount**: [if applicable]
**Reviewer**:
**Review Date**:

Step 1.2: Quick Red Flag Check

Perform a rapid scan for the following 10 critical red flags. If 3+ flags are triggered, escalate to Deep Review.

Red Flags Triggered: ___ / 10

Step 1.3: Determine Review Depth

Based on the red flag count and contract value/risk:

Selected Review Depth: [ ] Quick [ ] Standard [ ] Deep

Workflow 2: Clause-by-Clause Analysis

Purpose: Systematically review all contract provisions using appropriate checklists. Duration: 1-4 hours (varies by contract complexity)

Step 2.1: Load Reference Materials

Load the following references based on contract type:

• references/clause_analysis_guide.md - Clause-specific analysis criteria
• references/red_flag_patterns.md - Detailed red flag patterns

Step 2.2: Core Clause Analysis

Review each clause category systematically. For each clause, assess:

• Presence: Is the clause present? Is it complete?
• Balance: Are obligations mutual or one-sided?
• Risk: What is the potential exposure?
• Market: Is this language standard or non-standard?

2.2.1 Fundamental Clauses

2.2.2 Risk Allocation Clauses

2.2.3 Operational Clauses

2.2.4 Legal/Compliance Clauses

2.2.5 Contract Type-Specific Clauses

For NDAs: Refer to references/clause_analysis_guide.md Section 5.1 For MSAs: Refer to references/clause_analysis_guide.md Section 5.2 For SOWs: Refer to references/clause_analysis_guide.md Section 5.3 For SLAs: Refer to references/clause_analysis_guide.md Section 5.4 For License Agreements: Refer to references/clause_analysis_guide.md Section 5.5

Step 2.3: Document Findings

For each issue identified, document using this format:

### Finding #[ID]: [Brief Title]

**Severity**: [Critical / High / Medium / Low]
**Clause Reference**: Section/Article [X.X]
**Clause Text**: "[Relevant excerpt]"

**Issue**:
[Describe the problem with this clause]

**Risk**:
[Explain the potential business/legal/financial impact]

**Recommendation**:
[Proposed action - accept, negotiate, or reject]

**Alternative Language**:
[If applicable, suggest revised wording]

Workflow 3: Risk Assessment

Purpose: Quantify and prioritize identified risks. Duration: 30-60 minutes

Step 3.1: Load Risk Framework

Load references/risk_assessment_framework.md for detailed scoring criteria.

Step 3.2: Score Each Finding

For each finding from Workflow 2, assign scores:

Likelihood Score (1-5):

Impact Score (1-5):

Risk Score = Likelihood × Impact (range: 1-25)

Step 3.3: Create Risk Matrix

Map all findings to the risk matrix:

                    IMPACT
           1    2    3    4    5
         +----+----+----+----+----+
       5 | M  | H  | H  | C  | C  |
         +----+----+----+----+----+
       4 | M  | M  | H  | H  | C  |
L      +----+----+----+----+----+
I    3 | L  | M  | M  | H  | H  |
K      +----+----+----+----+----+
E    2 | L  | L  | M  | M  | H  |
L      +----+----+----+----+----+
I    1 | L  | L  | L  | M  | M  |
H      +----+----+----+----+----+
O
O       L = Low  M = Medium  H = High  C = Critical
D

Step 3.4: Calculate Overall Risk Score

Aggregate findings into an Overall Contract Risk Score (0-100):

Overall Score = Σ(Finding Risk Scores) × Weight Factor / Maximum Possible Score × 100

Weight Factors:
- Critical findings: 3x
- High findings: 2x
- Medium findings: 1x
- Low findings: 0.5x

Interpretation:

Step 3.5: Risk Summary Table

Create a summary of top 10 risks:

Workflow 4: Negotiation Preparation

Purpose: Develop negotiation strategy with prioritized requests and alternatives. Duration: 30-60 minutes

Step 4.1: Load Negotiation Guide

Load references/negotiation_strategies.md for alternative clause language library.

Step 4.2: Categorize Findings for Negotiation

Sort findings into negotiation categories:

4.2.1 Deal Breakers (Must Change)

Issues that would prevent signing if not resolved:

4.2.2 High Priority (Should Change)

Issues with significant risk that should be negotiated:

4.2.3 Nice to Have (Could Change)

Lower priority items that improve the contract but aren't essential:

4.2.4 Accept As-Is

Standard terms acceptable without modification.

Step 4.3: Prepare Alternative Language

For each negotiation item, prepare:

1. Preferred language - Ideal wording
2. Alternative language - Acceptable compromise
3. Minimum position - Lowest acceptable terms

Reference references/negotiation_strategies.md for clause-specific alternatives.

Step 4.4: Identify Leverage Points

Consider these negotiation factors:

• Contract value and strategic importance to counterparty
• Competitive alternatives available
• Urgency of deal for each party
• Precedent from other agreements
• Industry standards and market terms

Step 4.5: Create Negotiation Summary

## Negotiation Summary

**Overall Negotiation Priority**: [High / Medium / Low]

### Must Change (Deal Breakers)
1. [Issue summary] - [Required resolution]

### Should Change (High Priority)
1. [Issue summary] - [Preferred resolution]

### Could Change (Nice to Have)
1. [Issue summary] - [Requested change]

### Key Talking Points
-
-

### Anticipated Pushback
| Our Request | Expected Response | Counter-Strategy |
|-------------|-------------------|------------------|
| | | |

Workflow 5: Final Report

Purpose: Generate comprehensive review report for decision-makers. Duration: 30 minutes

Step 5.1: Load Report Template

Load assets/review_report_template.md as the output structure.

Step 5.2: Compile Executive Summary

Create a 1-page executive summary including:

• Contract Overview: Type, parties, term, value
• Overall Assessment: Risk score, recommendation
• Key Findings: Top 3-5 critical issues
• Recommended Action: Approve / Conditional Approve / Revise / Reject

Step 5.3: Populate Detailed Findings

Transfer all findings from Workflow 2 into the report template, organized by severity.

Step 5.4: Include Risk Assessment

Add the risk matrix and summary table from Workflow 3.

Step 5.5: Add Negotiation Guidance

Include the negotiation summary and alternative language from Workflow 4.

Step 5.6: Final Recommendation

Provide a clear recommendation:

Step 5.7: Next Steps

Define clear next actions:

## Next Steps

1. [ ] [Action item with owner and due date]
2. [ ] [Action item with owner and due date]
3. [ ] [Action item with owner and due date]

**Legal Review Required**: [Yes / No]
**Escalation Required**: [Yes / No] - [To whom]

Quick Reference: Severity Definitions

Automation Support

Use the analysis script for automated preliminary analysis:

# Basic analysis
python scripts/analyze_contract.py contract.pdf --output report.md

# With contract type specification
python scripts/analyze_contract.py contract.pdf --type nda --output nda_review.md

# Full analysis with all options
python scripts/analyze_contract.py contract.pdf \
  --type msa \
  --party-name "Our Company Inc." \
  --output detailed_review.md \
  --verbose

The script performs:

• Contract type auto-detection
• Key clause extraction
• Red flag pattern matching (regex mode and absence mode for document-wide checks)
• Preliminary risk scoring

Note on Risk Scoring: The script uses a simplified additive formula (Critical=20, High=10, Medium=5, Low=2 points per finding, capped at 100). For the full Likelihood × Impact weighted risk matrix, use Workflow 3 manually.

Note: Automated analysis is a starting point. Always perform manual review using the full workflow for final assessment.

Output

This skill produces the following outputs:

Report Sections:

1. Contract Overview (type, parties, term, key terms)
2. Risk Assessment (score, level, red flags)
3. Clause Coverage (present/missing analysis)
4. Recommendations (prioritized action items)
5. Negotiation Guidance (alternative language, talking points)

Resources

Scripts

References

Assets