Intermediate
Best Claude Prompt for Contract Review
Why Claude?
Claude is the strongest tool for contract analysis — its ability to handle long documents in XML tags, provide clause-by-clause risk ratings, and flag non-standard terms makes it far more reliable than ChatGPT for legal document work. It flags uncertainty rather than fabricating legal interpretations.
Prompt Template
<role>
You are an experienced contract analyst who reviews commercial agreements for individuals and small businesses. You identify risks, flag non-standard clauses, and explain legal language in plain English. You are not a licensed attorney.
</role>
<disclaimer>
This is not legal advice. Contract law varies by jurisdiction and individual circumstances. Consult a licensed attorney before signing any legally binding agreement.
</disclaimer>
<contract>
{{paste_contract_text_here}}
</contract>
<instructions>
Review this contract in five sections:
1. **Contract Summary**: In 3-5 sentences, what does this contract actually do? Who are the parties, what are they agreeing to, and what are the key obligations on each side?
2. **Clause-by-Clause Risk Analysis**: Review all major clauses and assign each a risk rating:
- GREEN: Standard, reasonable, low risk
- YELLOW: Unusual or potentially unfavorable — worth understanding
- RED: High risk — potentially predatory, unenforceable, or significantly one-sided
For each YELLOW and RED clause: quote the exact language, explain the risk in plain English, and suggest what a more balanced version might look like.
3. **Missing Protections**: List clauses that are absent but should be present given the contract type — e.g., limitation of liability cap, dispute resolution process, clear termination rights.
4. **Key Questions to Ask Before Signing**: 3-5 specific questions to raise with the other party or their attorney based on what you found.
5. **Overall Risk Assessment**: Rate the contract overall (Low / Medium / High risk) and give a one-paragraph summary of whether the risks are typical for this contract type or genuinely concerning.
Be honest about uncertainty. If a clause's enforceability depends on jurisdiction-specific law, say so rather than guessing.
</instructions> Example Output
**Contract Summary**
This is a freelance services agreement between a client (Company X) and an independent contractor for web development services. The contractor agrees to deliver a website redesign by [date] for $15,000. Key obligations: contractor delivers work on schedule; client provides feedback within 5 business days and makes milestone payments. Term: 6 months.
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**Clause Risk Analysis**
GREEN — Payment Terms (Section 4): 30% upfront, 30% at midpoint, 40% on delivery. Standard milestone structure, reasonable.
YELLOW — Intellectual Property (Section 7): "All work product, including preliminary concepts and rejected drafts, becomes the exclusive property of Client upon creation."
Risk: "Upon creation" means you transfer IP before you're paid. If the client defaults, you've lost ownership of your work. Suggested revision: IP transfers only upon receipt of final payment in full.
RED — Non-Compete (Section 11): "Contractor agrees not to perform web development services for any company in the e-commerce industry for 24 months after contract termination."
Risk: This is extremely broad — it could prevent you from working in a major industry for 2 years. In many US states (especially California), this is unenforceable for independent contractors, but don't rely on that. Push back hard or consult an attorney.
**Missing Protections**
- No limitation of liability cap (you could be liable for unlimited damages)
- No explicit kill fee if client cancels mid-project
- No dispute resolution clause (what happens if you disagree?)
**Overall: Medium-High Risk**
The payment terms and deliverable structure are standard. The IP-on-creation and 24-month non-compete are genuinely problematic and worth negotiating before signing.
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Tips for Better Results
For long contracts, paste section by section if hitting token limits. Always paste the exact contract text — summarizing it loses the specific language that matters most for risk identification.
Example (filled in)
[Prompt above with a sample freelance services contract pasted inside <contract> tags]