--- name: contract-analyzer-onewave-ai title: Contract Analyzer description: Review contracts for concerning clauses, extract key terms, compare to standard terms, and flag unusual provisions. Use when user needs contract review, legal document analysis, or agreement evaluation. author: OneWave-AI author_url: https://github.com/OneWave-AI/claude-skills/tree/main/contract-analyzer license: MIT version: 0.1.0 execution_mode: open jurisdiction: general practice: contracts language: en --- # Contract Analyzer Intelligent contract review highlighting risks, key terms, and unusual provisions. ## When to Use This Skill Activate when the user: - Provides a contract or agreement to review - Asks "review this contract" - Needs to understand contract terms - Wants concerning clauses identified - Mentions NDA, employment agreement, freelance contract - Needs to compare contract terms - Asks about legal document analysis ## ⚠️ Important Disclaimers **Include this disclaimer in every output:** > ⚠️ **Legal Disclaimer**: This is informational analysis only, not legal advice. Always consult with a qualified attorney for legal matters. Contract interpretation can be complex and jurisdiction-specific. ## Instructions 1. **Identify Contract Type** - Employment agreement - Independent contractor/freelance agreement - Non-disclosure agreement (NDA) - Service agreement - Partnership agreement - Software license - Real estate agreement - Purchase agreement 2. **Extract Key Terms** **Financial Terms:** - Payment amount and schedule - Rate increases or bonuses - Expense reimbursement - Late payment penalties - Price adjustments **Duration and Termination:** - Contract length - Renewal terms (automatic or manual) - Termination conditions - Notice period required - Termination fees or penalties **Intellectual Property:** - Work-for-hire provisions - IP ownership (who owns what) - IP assignment clauses - License grants - Pre-existing IP protections **Liability and Indemnification:** - Liability caps - Indemnification obligations - Insurance requirements - Warranty disclaimers **Other Critical Terms:** - Non-compete clauses - Confidentiality obligations - Dispute resolution (arbitration, jurisdiction) - Governing law - Amendment procedures 3. **Flag Concerning Clauses** **Red Flags (High Risk):** - Unlimited liability - Perpetual non-compete - Automatic renewal without notice - Unreasonable indemnification - One-sided termination rights - Unclear payment terms - Overly broad IP assignment - Waiver of legal rights - Mandatory arbitration (in some contexts) **Yellow Flags (Review Carefully):** - Long non-compete duration - Broad confidentiality scope - Short termination notice - Net 60+ payment terms - Restrictive exclusivity clauses - Unilateral amendment rights 4. **Compare to Industry Standards** - Note terms that deviate from typical agreements - Identify unusually favorable or unfavorable terms - Flag missing standard protections - Note one-sided provisions 5. **Assess Balance** - Is contract heavily favoring one party? - Are obligations reciprocal? - Are penalties balanced? - Are protections mutual? 6. **Provide Actionable Recommendations** - Specific clauses to negotiate - Alternative language suggestions - Questions to ask the other party - Terms to add or clarify - Deal-breakers to consider ## Output Format ```markdown # Contract Analysis Report ⚠️ **Legal Disclaimer**: This is informational analysis only, not legal advice. Always consult with a qualified attorney for legal matters. ## Contract Overview - **Type**: [Contract type] - **Parties**: [Your company] & [Other party] - **Effective Date**: [Date] - **Term**: [Duration] --- ## 🚨 Red Flags (Critical Issues) ### 1. Unlimited Personal Liability (Section X) **Clause**: "[Quote problematic language]" **Risk**: You could be personally liable for unlimited damages, even beyond insurance coverage. **Standard Alternative**: Liability should be capped at contract value or insurance limits. **Recommendation**: Negotiate liability cap of $X or insurance policy limit. --- ## ⚠️ Yellow Flags (Concerning Terms) ### 2. 2-Year Non-Compete (Section Y) **Clause**: "[Quote]" **Concern**: Prevents working in your field for 24 months. **Industry Standard**: 6-12 months is more typical for this role. **Recommendation**: Negotiate reduction to 6 months and narrower geographic/industry scope. --- ## 💰 Financial Terms | Term | Details | Assessment | |------|---------|------------| | Payment | $X,XXX/month | ✓ Reasonable | | Payment Schedule | Net 60 | ⚠️ Long (Net 30 preferred) | | Late Fees | None | ⚠️ Consider adding | | Rate Increases | Annual 3% | ✓ Good | --- ## 📋 Key Terms Summary ### Intellectual Property - **Ownership**: [Who owns work product] - **Assessment**: ⚠️ Clause X assigns all IP, including pre-existing work - **Recommendation**: Add carve-out for pre-existing IP ### Termination - **Notice Period**: 30 days - **Termination for Convenience**: [Yes/No] - **Assessment**: ✓ Reasonable terms ### Confidentiality - **Duration**: 3 years post-termination - **Scope**: [Broad/Narrow] - **Assessment**: ✓ Standard ### Dispute Resolution - **Method**: Mandatory arbitration (JAMS rules) - **Jurisdiction**: [State] - **Assessment**: ⚠️ Limits court access; may favor large company --- ## ⚖️ Balance Assessment **Overall Balance**: ⚠️ Somewhat one-sided **Favors**: [Party name] **Issues**: - Termination rights are one-sided (they can terminate for convenience, you cannot) - Indemnification obligations only apply to you - They can amend terms with 30 days notice --- ## ✅ Positive Terms 1. Clear payment schedule 2. Reasonable confidentiality duration 3. Insurance requirements are standard 4. IP ownership for pre-existing work protected --- ## 📝 Negotiation Recommendations ### Must Negotiate (Deal Critical) 1. **Liability Cap**: Add cap of $XXX,XXX or insurance limits 2. **Non-Compete**: Reduce to 6 months ### Should Negotiate (High Priority) 3. **Payment Terms**: Request Net 30 instead of Net 60 4. **Mutual Termination**: Add for-convenience termination rights for both parties ### Consider Negotiating (Nice to Have) 5. **Arbitration**: Add option for small claims court 6. **Amendment Rights**: Require mutual consent for material changes --- ## ❓ Questions to Ask 1. "Can we cap liability at the contract value of $X?" 2. "Would you consider reducing the non-compete period to 6 months?" 3. "Can we adjust payment terms to Net 30?" 4. "Is the mandatory arbitration clause negotiable?" --- ## 🚩 Missing Clauses Standard provisions not included: - Force majeure clause (pandemic, natural disasters) - Data protection/GDPR compliance - Insurance requirements - Warranty of authority --- ## Overall Recommendation **Risk Level**: ⚠️ Medium-High **Action**: Do NOT sign as-is. Negotiate key terms (liability cap, non-compete, payment terms) before signing. Consult attorney for review. **Deal Assessment**: [Acceptable if concerns addressed / Proceed with caution / Significant concerns] ``` ## Examples **User**: "Review this freelance contract" **Response**: Identify contract type (independent contractor) → Extract payment terms, IP ownership, termination → Flag unlimited indemnification clause → Note missing late payment terms → Compare to standard freelance agreements → Recommend specific negotiations **User**: "Is this NDA reasonable?" **Response**: Analyze confidentiality scope (overly broad, includes "residual knowledge") → Check duration (perpetual - concerning) → Review reciprocity (one-way NDA) → Flag concerning terms → Suggest mutual NDA with 3-year term **User**: "What should I look out for in this employment agreement?" **Response**: Review compensation, benefits, IP assignment → Flag broad non-compete (entire industry, 2 years) → Note missing remote work provisions → Check termination clauses → Identify one-sided provisions → Provide negotiation priorities ## Best Practices - Always include legal disclaimer - Quote specific problematic language - Provide section/clause numbers - Explain *why* something is concerning (not just that it is) - Offer specific alternative language - Prioritize issues (must-fix vs. nice-to-have) - Compare to industry standards when possible - Note missing standard protections - Consider user's leverage and circumstances - Provide negotiation talking points - Be specific with recommendations - Highlight positive terms too (not just negative) - Use clear risk indicators (🚨 ⚠️ ✓) - Make output scannable and actionable