How to Use Claude for Reviewing Contracts
The exact prompt, setup, and codes to get great results.
The Problem
Contract review from a lawyer costs $500+ per hour. Most founders and freelancers sign contracts without understanding the liability clauses, termination terms, or IP assignment language.
The Prompt (Copy & Paste)
Review this contract and flag risks. Contract type: [SERVICE AGREEMENT / NDA / EMPLOYMENT / LICENSING] My role: [AM I THE SERVICE PROVIDER OR THE CLIENT?] Industry: [INDUSTRY] Concerns: [ANYTHING SPECIFIC I'M WORRIED ABOUT] Contract text: [PASTE THE FULL CONTRACT OR KEY SECTIONS] Review for: 1. **Unfavorable terms**: Clauses that disproportionately favor the other party 2. **Missing protections**: Standard clauses that SHOULD be here but aren't 3. **Liability exposure**: What could I be held liable for? Any uncapped liability? 4. **Termination**: How easy/hard is it to exit? Penalties? 5. **IP ownership**: Who owns work product? Any problematic assignment language? 6. **Non-compete/non-solicit**: Scope and enforceability 7. **Payment terms**: Are they favorable? Net 30/60/90? 8. **Red flags**: Anything unusual or concerning Format each finding as: Clause → Issue → Risk Level → Suggested Change. IMPORTANT: Note that this is NOT legal advice and I should have a lawyer review critical contracts.
Replace the [BRACKETED] placeholders with your specific details.
What You Get
A structured contract review that identifies the key risk areas, missing protections, and unfavorable terms — with suggested changes for each. Saves you the first $500 of legal review.
Prompt Codes That Help
Add these prefix codes to the start of your prompt for even better results:
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More Legal Tasks
Reviewing an NDA
NDAs seem standard but vary wildly. Some have mutual protections; others let the other party claim ownership of anything you discuss. Most people sign without reading.
Legal Research
Legal research traditionally requires expensive database access and trained paralegals. Founders and small businesses need basic legal understanding but can't afford $400/hour associates.
Writing Terms of Service
Every SaaS needs ToS but hiring a lawyer to draft them costs $2,000-5,000. Most founders either copy someone else's (risky) or skip them entirely (riskier).
Compliance Checklist
Compliance requirements vary by industry, jurisdiction, and company size. Missing a requirement can mean fines, lawsuits, or losing the ability to operate entirely.
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