AI Prompt: Contract Risk Identification by Severity
Quickly classify contract risks by severity, quote the exact language, explain why it bites, and get suggested alternative wording for each flag.
The Prompt
Review this contract from the perspective of [party type].
Identify and categorize all risks:
HIGH RISK - Deal breakers or significant liability exposure
MEDIUM RISK - Unfavorable terms requiring negotiation
LOW RISK - Minor issues or standard unfavorable terms
For each risk:
1. Quote the specific contract language
2. Explain why it's risky
3. Suggest alternative language
4. Note if this is standard in the industry
[Paste contract]Variables (1)
| Variable | Description | Example |
|---|---|---|
| {{party_type}} | Party Type | the Licensee |
Expected Output
A risk inventory grouped into HIGH, MEDIUM, and LOW tiers, with the quoted contract language, a short explanation of the risk, suggested alternative wording, and a note on whether the term is industry-standard.
Usage Notes
Always specify which party you represent — the same clause can be a deal-breaker for one side and boilerplate for the other. Treat the LOW tier as your batch-edit list, not as no-issue.
Originally featured in: AI Contract Drafting: A Lawyer's Complete Handbook
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