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Contract Clause Analyzer

Reads a contract or agreement, identifies key clauses, flags risky or unusual terms, and generates a plain-English summary with recommendations. Researches standard clause language via Brave Search. Prerequisites: brave-search MCP, python3.

Legal & Contracts|v1|Updated 5/18/2026
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# Contract Clause Analyzer

Analyze contracts to identify key clauses, flag risky terms, and generate plain-English summaries with research-backed recommendations.

## When to Use

- "Review this contract for red flags"
- "What does this clause mean in plain English?"
- "Is this non-compete enforceable?"

## Requirements

- **Brave Search MCP** for legal standards and clause research
- **python3** for clause extraction and categorization

## Workflow

### Step 1 โ€” Contract Details

- **Contract type** (employment, SaaS, NDA, lease, freelance, vendor)
- **Your role** (signing party, drafting party, reviewing for someone)
- **Contract text** (paste full text)
- **Specific concerns** (if any)

### Step 2 โ€” Research Standard Terms

```
brave_web_search: "{CONTRACT_TYPE} contract standard clauses {YEAR}"
brave_web_search: "{CONTRACT_TYPE} contract red flags what to watch for"
brave_web_search: "{SPECIFIC_CLAUSE} enforceability {STATE}"
```

### Step 3 โ€” Extract & Categorize Clauses

```bash
python3 << 'PYEOF'
import re

contract_text = """{CONTRACT_TEXT}"""

# Find key clause types
clause_patterns = {
    "Termination": r'(?i)(terminat|cancell|end of agreement)',
    "Liability": r'(?i)(liabil|indemnif|hold harmless)',
    "Non-compete": r'(?i)(non.?compete|restrictive covenant|competition)',
    "IP/Ownership": r'(?i)(intellectual property|ownership|work.?for.?hire|assign)',
    "Confidentiality": r'(?i)(confidential|non.?disclosure|proprietary)',
    "Payment": r'(?i)(payment|compensat|invoice|fee|rate)',
    "Auto-renewal": r'(?i)(auto.?renew|automatic.*renewal)',
    "Arbitration": r'(?i)(arbitrat|mediat|dispute resolution)',
    "Governing Law": r'(?i)(governing law|jurisdiction|venue)',
}

for name, pattern in clause_patterns.items():
    matches = re.findall(pattern, contract_text)
    status = f"Found ({len(matches)} references)" if matches else "Not found"
    print(f"{name}: {status}")
PYEOF
```

### Step 4 โ€” Generate Analysis

```markdown
# Contract Analysis: {CONTRACT_TYPE}
๐Ÿ“„ Parties: {PARTY_A} โ†” {PARTY_B}
๐Ÿ“… Term: {DURATION} | Effective: {DATE}

## Executive Summary
{2-3 sentence plain-English summary of what this contract does}

## Key Terms
| Term | Details | Assessment |
|------|---------|------------|
| Duration | {X months/years} | {assessment} |
| Payment | ${X} / {frequency} | {assessment} |
| Termination | {notice period} | {assessment} |
| Auto-renewal | {Yes/No โ€” terms} | {assessment} |

## ๐Ÿ”ด Red Flags
| # | Clause | Section | Issue | Risk Level |
|---|--------|---------|-------|------------|
| 1 | {Clause name} | ยง{N} | {Plain-English explanation of the problem} | ๐Ÿ”ด High |
| 2 | {Clause name} | ยง{N} | {Issue} | ๐ŸŸก Medium |

## ๐ŸŸก Items to Negotiate
| Clause | Current Language | Suggested Change | Why |
|--------|-----------------|------------------|-----|
| {Clause} | "{current}" | "{suggested}" | {reason} |

## ๐ŸŸข Standard/Good Clauses
- {Clause}: Standard for this contract type โœ…
- {Clause}: Favorable to you โœ…

## Missing Clauses (Should Be Added)
- [ ] {Missing clause} โ€” {why it matters}
- [ ] {Missing clause} โ€” {why it matters}

## โš ๏ธ Disclaimer
This analysis is informational only and does not constitute legal advice. 
Consult a licensed attorney before signing.
```

### Step 5 โ€” Save Analysis

```bash
mkdir -p outputs/legal
cat > "outputs/legal/contract-analysis-{DATE}.md" << 'EOF'
{ANALYSIS}
EOF
```

## Important Rules

- ALWAYS include the legal disclaimer โ€” this is NOT legal advice
- Flag but don't advise on state-specific enforceability โ€” recommend local attorney
- Use Brave Search for current legal standards, not assumptions
- Be objective โ€” present risks, don't make signing decisions for the user
- Focus on unusual or one-sided terms vs. industry standard

## Example Prompts

- "Review this employment contract for red flags"
- "Is this non-compete clause reasonable?"
- "Analyze this SaaS terms of service โ€” what am I agreeing to?"
#legal#contracts#review#brave-searchbrave-searchpython3