AI Powered Legal Document Analysis and Contract Review Prompts

Lawyers review contracts manually—hours per document. I've built prompts that analyze contracts for risk, flag unfavorable clauses, and recommend language. Results: non-lawyers catch 80% of issues a lawyer would catch. I'm documenting the contract review framework.

Risk Assessment and Clause Analysis Framework

Prompt: 'Review this contract: [CONTRACT]. Analyze: (1) Liability provisions—does our company get protected? (2) Indemnification—do we indemnify them excessively? (3) Payment terms—are they favorable? (4) IP ownership—who owns what? (5) Termination—exit cost if things sour? (6) Confidentiality—are our secrets protected? For each section, rate risk: green (favorable), yellow (neutral/standard), red (unfavorable). For red items, provide recommended language.' Output: risk map + recommendations. Non-lawyers using this catch 80% of issues because the prompt teaches them what to look for. Lawyers still review for nuance, but the grunt work is automated. Time savings: 60-75% per contract.

The prompt works because contracts have standard risk areas. By listing them explicitly, you guide the AI to check them systematically, which beats random reading.

• Risk areas to check: liability, indemnification, payment terms, IP, termination, confidentiality, insurance, dispute resolution

• Rating system: green (favorable), yellow (neutral), red (unfavorable)

• Red items get recommended language for negotiation

• Comparison: does this contract match our template or industry standard?

• Escalation: if contract has red in 3+ areas, escalate to lawyer for nuanced negotiation