Contract Risk Analyzer: Inputs, Output Fields and How to Read Them
Technical guide to the Contract Risk Analyzer agent: accepted document formats, clause evaluation rules, risk scoring, and output schema definitions.
Overview
The Contract Risk Analyzer is a specialized AI document intelligence agent designed for attorneys, commercial contract managers, and procurement officers. The agent evaluates commercial contracts and legal agreements to extract foundational terms and identify operational, financial, and legal exposure. It performs a clause-level audit across limitation of liability provisions, indemnification scopes, intellectual property assignment, governing law, and unilateral termination triggers. Accepted file types include digital PDF (.pdf), scanned PDF (.pdf), and Microsoft Word (.docx) files up to 30 pages per execution. The agent is optimized for standard commercial legal instruments, specifically Master Services Agreements (MSAs), Commercial Vendor Agreements, Statements of Work (SOWs), Service Level Agreements (SLAs), Software License Agreements, and Consulting Agreements. For scanned documents, text extraction fidelity depends directly on scan quality (resolution, skew, blur). Scans captured at 300 DPI with flat alignment and strong contrast deliver the cleanest layout detection. Running the agent is straightforward: navigate to /ai-agents/contract-risk-analyzer in the application, select or drag-and-drop your agreement, and initiate the run. Each execution deducts exactly 1 credit from your monthly allowance. Maximum file size allowances adhere to your subscription plan (10 MB on Free, 50 MB on Pro, and 100 MB on Business). All uploaded contracts and generated output reports reside on temporary server storage and are automatically deleted after 2 hours. Agent output is AI-generated and can contain errors; results must be reviewed by the user and do not constitute legal advice. Sample Input (Illustrative example with dummy data): "SECTION 11. INDEMNIFICATION AND LIABILITY\n11.1 Vendor shall indemnify, defend, and hold harmless Customer from and against any and all third-party claims, damages, liabilities, costs, and expenses arising out of Vendor's performance under this Agreement.\n11.2 EXCEPT FOR INDEMNIFICATION OBLIGATIONS UNDER SECTION 11.1 AND BREACHES OF SECTION 8 (CONFIDENTIALITY), NEITHER PARTY'S AGGREGATE LIABILITY SHALL EXCEED THE TOTAL FEES PAID BY CUSTOMER IN THE TWELVE (12) MONTHS PRECEDING THE CLAIM.\n11.3 Customer may terminate this Agreement for convenience upon thirty (30) days prior written notice. Vendor may only terminate for cause following a thirty (30) day cure period."
Key Specifications & Highlights
Parameters & Response Codes
| Parameter / Code | Type | Required | Description |
|---|---|---|---|
| agreement_title | string | Required | Formal title of the legal agreement as stated in the contract header or title block |
| contract_type | string | Required | Identified agreement classification (Master Services Agreement, Vendor Agreement, SaaS, Licensing) |
| effective_date | string (YYYY-MM-DD) | Required | Commencement date from which the agreement covenants become legally binding |
| expiration_date | string (YYYY-MM-DD or Perpetual) | Required | Scheduled contract expiration date or notation of perpetual validity |
| parties | array of objects | Required | List of contractual entities including party_name, role (Client, Vendor, Contractor), and jurisdiction |
| overall_risk_score | integer (0-100) | Required | Quantitative risk index computed from identified contractual exposure flags |
| risk_grade | string | Required | Categorical risk grade assigned to the contract: Low, Medium, High, or Critical |
| liability_cap | object | Required | Object containing has_cap (boolean), cap_amount_usd (float), cap_multiplier, is_uncapped (boolean), and notes |
| indemnification | object | Required | Object detailing scope (Mutual/One-Way), is_mutual (boolean), carveouts_unlimited (boolean), and risk_level |
| termination_provisions | object | Required | Object detailing termination_for_convenience, notice_period_days, cure_days, and early_termination_penalty_usd |
| intellectual_property | object | Required | Object detailing work_for_hire status, ip_assignment_clear verification, and license_grant_terms |
| governing_law_and_jurisdiction | object | Required | Object detailing governing_law_state_or_country, arbitration_required (boolean), and venue location |
| risk_clauses | array of objects | Required | Specific flagged provisions with clause_name, severity (Critical/High/Medium/Low), extracted_text, and remedy |
| required_remedies | array of strings | Required | Recommended contractual redlines and amendments prioritized for legal review prior to execution |
Sample Output Payload (JSON Schema)
{
"agreement_title": "Master Professional Services Agreement",
"contract_type": "Master Services Agreement (MSA)",
"effective_date": "2026-11-01",
"expiration_date": "2027-10-31",
"parties": [
{
"party_name": "Apex Commercial Enterprise LLC",
"role": "Client",
"jurisdiction_of_incorporation": "Delaware, USA"
},
{
"party_name": "Frontier Cloud Systems Inc",
"role": "Vendor",
"jurisdiction_of_incorporation": "California, USA"
}
],
"overall_risk_score": 68,
"risk_grade": "Medium",
"liability_cap": {
"has_cap": true,
"cap_amount_usd": 120000.0,
"cap_multiplier": "12 months fees paid",
"is_uncapped": false,
"notes": "Liability capped at 12 months fees paid; indemnification and confidentiality are excluded from the cap."
},
"indemnification": {
"scope": "One-Way",
"is_mutual": false,
"carveouts_unlimited": true,
"carveout_details": "Vendor indemnifies Customer for third-party claims; no reciprocal indemnity provided to Vendor.",
"risk_level": "High"
},
"termination_provisions": {
"termination_for_convenience": true,
"notice_period_days": 30,
"termination_for_cause_cure_days": 30,
"early_termination_penalty_usd": 0.0
},
"intellectual_property": {
"work_for_hire": true,
"ip_assignment_clear": true,
"license_grant_terms": "Customer receives full ownership of custom deliverables upon payment; Vendor retains pre-existing tools."
},
"governing_law_and_jurisdiction": {
"governing_law_state_or_country": "Delaware, USA",
"arbitration_required": true,
"venue": "New Castle County, Delaware"
},
"risk_clauses": [
{
"clause_name": "Indemnification",
"severity": "High",
"extracted_text": "Vendor shall indemnify, defend, and hold harmless Customer from and against any and all third-party claims...",
"risk_analysis": "One-way indemnification obligation creates asymmetrical liability exposure without mutual protection for Vendor.",
"recommended_remedy": "Negotiate mutual indemnification language or cap indemnity obligations to the aggregate contract value."
}
],
"required_remedies": [
"Insert mutual indemnification protection for Vendor.",
"Add explicit carve-out capping gross negligence and third-party claims to 2x aggregate annual contract value."
]
}- Review the liability cap multiplier and note whether carve-outs (such as confidentiality breaches or IP claims) are excluded from the monetary ceiling.
- Verify whether termination for convenience is bilateral or unilateral before signing vendor contracts.
- Results must be reviewed by the user and do not constitute formal legal advice.