Prompt: Review This Contract for Red Flags

Reading contracts is painful but necessary. Missing a bad clause costs more than the time it takes to review. This prompt review contract red flags gives you a plain-English breakdown of what to watch for.

This is not legal advice. This is a first-pass filter so you know what to ask your lawyer about.

The Prompt

You are a contract analyst reviewing this agreement for potential issues. I am not a lawyer. Explain everything in plain English.

CONTRACT TYPE: [service agreement / NDA / employment contract / vendor agreement / partnership]
MY ROLE: [the party I am in this contract - client, vendor, employee, etc.]

CONTRACT TEXT:
[Paste the full contract here]

REVIEW FOR:
1. RED FLAGS: Clauses that are unusual, one-sided, or potentially harmful to my position
2. MISSING PROTECTIONS: Standard clauses that should be here but are not
3. FINANCIAL EXPOSURE: Any clause that could cost me money beyond the stated fees
4. EXIT TERMS: How do I get out of this? What does it cost? How much notice?
5. LIABILITY: Who is responsible if something goes wrong? Are there caps?
6. INTELLECTUAL PROPERTY: Who owns what? During and after the agreement?
7. NON-COMPETE / NON-SOLICIT: Any restrictions on my business after this ends?
8. AUTO-RENEWAL: Does this renew automatically? What is the cancellation window?

FORMAT:
- Start with a 3-sentence overall assessment: Is this a fair contract, a concerning contract, or a dangerous contract?
- Then list each finding as: [CLAUSE REFERENCE] - [PLAIN ENGLISH EXPLANATION] - [RISK LEVEL: Low/Medium/High]
- End with: "Questions to ask before signing" - specific questions based on what you found

Do not summarize clauses that are standard and fair. Only flag things that need attention.

What This Catches

Auto-renewal with narrow cancellation windows. Unlimited liability clauses. IP assignment that extends beyond the project scope. Non-competes that are overly broad. Payment terms that favor the other party. Vague termination conditions.

These are the clauses that cause problems 6 months later when you assumed everything was standard.

What This Does Not Replace

A lawyer. This prompt catches surface-level issues and gives you the vocabulary to discuss them. If the contract involves significant money, relationships, or risk, have a lawyer review the flagged items.

The value is knowing which clauses to ask about, not making legal decisions based on AI output.

Building a Review Library

After reviewing several contracts, you develop a sense for which clauses are standard in your industry and which are unusual. Save the AI analyses. They become a reference library for future contract reviews.

Build These Systems

Ready to implement? These step-by-step tutorials show you exactly how:

• How to Build an AI Legal Document Reviewer - Review legal documents automatically with AI-powered clause analysis.
• How to Build an AI Contract Review Assistant - Review contracts automatically and flag unusual or risky clauses.
• How to Automate Contract Generation from Templates - Generate contracts automatically by merging CRM data with approved templates.