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

Type	Abbreviation	Primary Focus
Non-Disclosure Agreement	NDA	Confidentiality, information protection
Master Service Agreement	MSA	Overall service terms, liability allocation
Statement of Work / Service Agreement	SOW	Scope, deliverables, acceptance criteria
Service Level Agreement	SLA	Performance metrics, remedies, credits
Software License Agreement	License	Usage rights, restrictions, compliance

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 Flag	Check	Status
1	Unlimited liability exposure	Look for missing caps or "unlimited" language	[ ]
2	One-sided indemnification	Indemnity only flows one direction	[ ]
3	Automatic renewal with difficult opt-out	Notice periods >60 days, evergreen clauses	[ ]
4	Unilateral amendment rights	Other party can change terms without consent	[ ]
5	Problematic governing law	Unfavorable jurisdiction, foreign courts	[ ]
6	Broad IP assignment	Assigns rights beyond deliverables	[ ]
7	Missing limitation on consequential damages	No carve-out for indirect damages	[ ]
8	Excessive termination penalties	Penalties exceed reasonable costs	[ ]
9	Non-compete or exclusivity restrictions	Limits on business operations	[ ]
10	Inadequate data protection provisions	GDPR/privacy gaps, data breach handling	[ ]

Red Flags Triggered: ___ / 10

Step 1.3: Determine Review Depth

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

Criteria	Quick Review	Standard Review	Deep Review
Red flags	0-1	2-3	4+
Contract value	<$50K	$50K-$500K	>$500K
Strategic importance	Low	Medium	High
Renewal/existing	Routine renewal	New vendor	Strategic partnership

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

Clause	Key Questions	Notes
Definitions	Are key terms clearly defined? Any ambiguous terms?
Scope/Purpose	Is the scope clearly bounded? Any scope creep risks?
Term & Renewal	Auto-renewal? Notice period? Renewal terms?
Termination	Termination rights balanced? Termination consequences clear?

2.2.2 Risk Allocation Clauses

Clause	Key Questions	Notes
Limitation of Liability	Cap amount? Excluded damages? Carve-outs?
Indemnification	Mutual or one-sided? Scope of indemnity? Caps?
Insurance	Required coverage types? Minimum amounts? Certificate requirements?
Warranties	Express vs. implied? Warranty disclaimers? Remedies?

2.2.3 Operational Clauses

Clause	Key Questions	Notes
Payment Terms	Payment timing? Late fees? Currency?
Performance/SLA	Metrics defined? Measurement method? Remedies/credits?
Acceptance	Acceptance criteria? Testing period? Deemed acceptance?
Change Management	Change process? Pricing for changes?

2.2.4 Legal/Compliance Clauses

Clause	Key Questions	Notes
Confidentiality	Definition scope? Duration? Return/destruction?
Data Protection	GDPR compliance? Data processor terms? Breach notification?
IP Rights	Ownership clear? License grants appropriate? Work product rights?
Governing Law	Jurisdiction acceptable? Dispute resolution mechanism?

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):

Score	Description
1	Rare - Unlikely to occur
2	Unlikely - Could occur but not expected
3	Possible - Might occur
4	Likely - Expected to occur
5	Almost Certain - Will occur

Impact Score (1-5):

Score	Description
1	Negligible - Minimal impact
2	Minor - Some impact, easily managed
3	Moderate - Noticeable impact
4	Major - Significant impact
5	Severe - Critical impact, potential deal-breaker

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:

Score Range	Risk Level	Recommendation
0-25	Low	Acceptable with minor negotiation
26-50	Moderate	Negotiate key terms before signing
51-75	High	Significant negotiation required; escalate to legal
76-100	Critical	Do not sign without major revisions; consider alternatives

Step 3.5: Risk Summary Table

Create a summary of top 10 risks:

Rank	Finding ID	Title	L	I	Score	Category
1
2
...

---

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:

Finding ID	Issue	Minimum Acceptable Resolution

4.2.2 High Priority (Should Change)

Issues with significant risk that should be negotiated:

Finding ID	Issue	Preferred Resolution	Acceptable Alternative

4.2.3 Nice to Have (Could Change)

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

Finding ID	Issue	Requested Change

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:

Recommendation	Criteria
Approve	Overall risk score <25, no Critical/High findings
Conditional Approve	Risk score 25-50, High findings have acceptable alternatives
Revise & Resubmit	Risk score 51-75, multiple High findings require changes
Reject	Risk score >75, deal breakers present, or fundamental misalignment

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

Severity	Definition	Example
Critical	Deal breaker; unacceptable risk	Unlimited liability, IP assignment of all company IP
High	Significant risk requiring attention	One-sided indemnification, unfavorable jurisdiction
Medium	Notable issue but manageable	Missing SLA credits, short cure periods
Low	Minor concern, nice to improve	Non-standard payment terms, minor definitional issues

---

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.

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Output

This skill produces the following outputs:

Output	Format	Description
Analysis Report	Markdown (.md)	Comprehensive contract review report with risk assessment
Risk Score	0-100 integer	Quantified overall contract risk level
Red Flag List	Table	Prioritized list of identified issues with recommendations
Clause Coverage	Checklist	Summary of present/missing standard clauses
Negotiation Summary	Structured list	Deal breakers, high priority items, and acceptable terms

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

Script	Path	Purpose
analyze_contract.py	scripts/analyze_contract.py	Automated preliminary contract analysis
pattern_definitions.py	scripts/pattern_definitions.py	Red flag patterns and clause detection rules

References

Reference	Path	Purpose
Clause Analysis Guide	references/clause_analysis_guide.md	Detailed clause-specific analysis criteria
Red Flag Patterns	references/red_flag_patterns.md	Comprehensive red flag catalog
Risk Assessment Framework	references/risk_assessment_framework.md	Risk scoring methodology
Contract Review Methodology	references/contract_review_methodology.md	Process deep dive
Negotiation Strategies	references/negotiation_strategies.md	Alternative clause library

Assets

Asset	Path	Purpose
Review Report Template	assets/review_report_template.md	Report output template
Clause Checklist	assets/clause_checklist.md	Interactive review checklist