Contract Review Made Simple
Reviewing a contract doesn't require a law degree. Whether you are signing a client agreement, vendor contract, or NDA, this guide breaks down the essential terms you must check before signing.
The 10-Point Contract Review Checklist
Use this practical checklist every time you receive a contract to ensure your financial and operational interests are protected.
Payment Terms & Schedule
Check payment amounts, net payment windows (e.g., Net 15 vs Net 60), late fee terms, and invoicing triggers.
Contract Duration & Expiration
Identify start and end dates. Look closely for automatic renewal clauses requiring advance written cancellation.
Termination Rights
Can either party terminate without cause? Check required notice periods (30 days is a common window, depending on the agreement) and termination terms.
Limitation of Liability
A commonly negotiated position is capping liability at fees paid under the agreement, though appropriate limits depend on the deal.
Indemnification Obligations
Beware of broad, one-sided indemnity clauses requiring you to cover all legal defense fees regardless of fault.
Confidentiality & Non-Disclosure
Verify what constitutes confidential info; confidentiality obligations often specify periods of 2 to 5 years depending on applicable law.
Intellectual Property Rights
Confirm who owns work product. Ensure IP transfer is strictly conditional upon receipt of full payment.
Scope of Work & Deliverables
Ensure project scope, milestones, and client review timelines are clearly defined to prevent scope creep.
Dispute Resolution & Forum
Check where lawsuits or arbitration must take place. Defending a case in another state or country is costly.
Unusual & One-Sided Clauses
Watch out for non-compete provisions, mandatory exclusivity, or unannounced price escalation clauses.
Manual Review vs. AI-Assisted Contract Review
| Feature | Manual Self-Review | ContractAI Assistance |
|---|---|---|
| Turnaround Time | 2 to 5 hours of reading | Under 60 seconds |
| Jargon Translation | Requires searching legal terms | Instant plain-English summaries |
| Risk Spotting | Easy to miss fine print | Automated pattern scanning |
| Suggested Counter-Terms | Manual drafting required | Pre-written fallback language |
| Cost | $250-$500/hr lawyer fees | Free instant initial review |
Speed Up Your Contract Review Process
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