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Hey AI Breakers 👋
You’re about to sign something important and you’re speed-reading the fine print hoping nothing bad is hiding in there. Sound about right?
Today, you’ll build a Contract Analyzer that turns any agreement into a clear, plain-English breakdown.
✅ A full clause-by-clause summary in plain English
✅ Every red flag and risk ranked by severity
✅ Hidden obligations and auto-renewal traps spotted
✅ A negotiation playbook with specific counter-language
✅ A side-by-side comparison tool for multiple offers
✅ A one-page executive brief you can share with your team
Let’s build it 👇
How the Contract Analyzer Works
Here’s the flow:
📄 Raw Contract → 🔎 Clause Extraction → ⚠️ Risk Scan → 🎯 Obligation Mapping → 🥊 Negotiation Playbook → 📊 Executive Brief
You’re doing what a $500/hour lawyer does in a first-pass review. In about 10 minutes instead of 3 days.
This works for:
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SaaS agreements and vendor contracts
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Freelancer and contractor agreements
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Partnership and JV deals
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Office leases and service agreements
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NDAs, MSAs, and SOWs
All you need is the contract text (copy-paste or upload the PDF to ChatGPT/Claude).
🔎 Prompt #1 → The Clause Extractor (Turn Legal Jargon Into Plain English)
Most contracts are deliberately hard to read. This prompt breaks every section into language a normal human can understand.
The goal:
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Extract every clause and rewrite it in simple terms
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Identify what each section actually means for you
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Spot anything unusual compared to standard agreements
✅ Use this as your first pass on any contract before signing anything.
Prompt:
You are a senior contract analyst with 20 years of experience reviewing business agreements. I will paste a contract below. Your job is to break it down so a non-lawyer business owner can understand every section. For each clause or section: 1. Give it a plain-English name (e.g., "What You're Paying" instead of "Compensation Terms") 2. Summarize what it actually says in 1-2 simple sentences 3. Rate its favorability: ✅ Standard / ⚠️ Worth Noting / 🚩 Unusual 4. Flag any vague language that could be interpreted against me At the end, provide: - A "TL;DR" summary of the entire contract in 5 bullet points - The 3 most important things I need to understand before signing - Any sections that are missing but should be there Here is the contract: [PASTE YOUR FULL CONTRACT TEXT HERE]
💡 Tip: If the contract is a PDF, upload it directly to ChatGPT or Claude. Both can read PDFs natively now. For best results, paste the full text so nothing gets missed.
⚠️ Prompt #2 → The Risk Scanner (Find Every Red Flag Before It Bites You)
A plain-English summary is nice. But what you really need to know is: where could this hurt me?
The goal:
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Identify every risk, liability, and penalty clause
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Rank them by potential financial and operational impact
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Flag the sneaky stuff that’s easy to miss
✅ Use this to build your “watch list” before any negotiation.
Prompt:
You are a risk management attorney who specializes in protecting businesses from bad contracts. Using this contract analysis: [PASTE OUTPUT FROM PROMPT #1] And the original contract: [PASTE ORIGINAL CONTRACT] Conduct a full risk assessment. For each risk found: 1. Name the risk in plain English 2. Quote the exact clause that creates it 3. Explain the worst-case scenario if triggered 4. Rate severity: 🟢 Low / 🟡 Medium / 🔴 High / ⚫ Critical 5. Estimate potential financial exposure (range) Specifically look for: - Unlimited liability or uncapped damages - Auto-renewal clauses and cancellation windows - Non-compete or exclusivity restrictions - IP ownership transfers or licenses - Indemnification obligations (who pays if something goes wrong) - Termination penalties or early exit fees - Change-of-terms clauses (can they modify the deal unilaterally?) - Jurisdiction and dispute resolution (where would you get sued?) - Data ownership and confidentiality traps Output a ranked risk table from highest to lowest severity. Then give me a "Risk Score" for the overall contract: Low / Medium / High / Walk Away.
💡 Tip: Pay special attention to indemnification clauses. They’re the #1 place businesses get blindsided. If you see “unlimited indemnification,” that’s almost always worth negotiating.
🎯 Prompt #3 → The Obligation Mapper (Know Exactly What You’re Committing To)
Contracts don’t just protect you. They create obligations. This prompt maps every single thing you’d be required to do, deliver, or pay.
The goal:
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Extract every obligation, deadline, and deliverable on your side
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Create a timeline of what’s due and when
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Identify obligations that are unreasonable or one-sided
✅ Use this to build your compliance checklist after signing.
Prompt:
You are a contract compliance specialist who helps businesses understand their obligations before signing. Using this contract analysis and risk assessment: [PASTE OUTPUT FROM PROMPT #1 AND PROMPT #2] Create a complete Obligation Map for my side of this agreement: 1. PAYMENT OBLIGATIONS - What I pay, when I pay, how I pay - Late payment penalties - Price escalation clauses 2. PERFORMANCE OBLIGATIONS - What I must deliver or do - Quality standards or SLAs I must meet - Reporting or notification requirements 3. TIMELINE OBLIGATIONS - All deadlines, milestones, and notice periods - Auto-renewal dates and cancellation windows - Response time requirements 4. RESTRICTION OBLIGATIONS - What I cannot do during the contract - Non-compete, exclusivity, or non-solicitation terms - Confidentiality requirements and duration 5. POST-TERMINATION OBLIGATIONS - What survives after the contract ends - Return of materials or data requirements - Ongoing confidentiality or non-compete periods For each obligation: - Quote the source clause - Rate difficulty: Easy / Manageable / Burdensome / Unreasonable - Flag if it's one-sided (they don't have the same obligation) End with a calendar view: list every deadline and obligation in chronological order.
💡 Tip: The calendar view at the end is gold. Copy it into your actual calendar with reminders. The #1 reason businesses lose money on contracts is missing a cancellation window or renewal date.
🥊 Prompt #4 → The Negotiation Playbook (Know What to Push Back On and How)
Now you know the risks and obligations. Time to build your counter-attack.
The goal:
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Prioritize which clauses to negotiate (highest impact first)
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Get specific counter-language you can actually propose
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Prepare fallback positions for each negotiation point
✅ Use this to walk into any negotiation armed with specific asks instead of vague discomfort.
Prompt:
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