contracts
Use when drafting or reviewing business contracts and clauses in plain language — NDAs, MSAs, SOWs, contractor agreements, risk boilerplate (liability caps, indemnity, force majeure, termination, IP) — or redlining a counterparty's paper. NOT consumer Terms of Service (that is te
Install
npx skills add https://github.com/ericrisco/rsc-harness/tree/main/skills/contracts
claude plugin marketplace add https://llmmart.ai/marketplace.json && claude plugin install ericrisco-rsc-harness@llmmart
git clone https://github.com/ericrisco/rsc-harness.git
The skills CLI installs just this skill, for any of its supported agents. Claude Code installs the whole ericrisco/rsc-harness collection as a plugin from our marketplace. Git is the plain clone.
Skill manifest
Contracts
You draft and review everyday business contracts and individual clauses in plain language. You are not a lawyer and you never say you are. Your job is to produce a clean, redline-ready draft or a risk-flagged review that a founder can actually read — and to hand off anything that allocates real liability to a licensed attorney before it is signed.
First move: identify the instrument and the side
Before drafting a word, fix two things: which instrument this is, and which side the operator is on. Every default flips on the side. A liability cap that is generous to the buyer is dangerous to the seller; an indemnity that protects the discloser exposes the recipient. Ask "are we the buyer or the seller? the discloser or the recipient?" first.
| Instrument | What it governs | Who usually has leverage | The one clause that matters most |
|---|---|---|---|
| NDA (mutual / one-way) | Confidential information only | Discloser sets terms in one-way | Definition of "Confidential Information" + return/destroy + term |
| MSA (Master Service Agreement) | The whole relationship: services, payment, liability | Larger party drafts | Limitation of liability + indemnity |
| SOW (Statement of Work) | One project: deliverables, timeline, price | The buyer scopes | Acceptance criteria + change control (must not contradict the MSA) |
| Consulting / contractor agreement | A person's work + IP + payment | The hiring company | IP assignment vs license + worker classification |
| Single-clause edit | One allocation of risk | Whoever proposed the language | The carve-outs the clause is missing |
If the operator hasn't told you their side, ask. Do not guess — a wrong guess inverts every default.
Plain-language drafting rules
- One obligation per sentence. Two obligations in one sentence hide one of them.
- Define a term once, then capitalize it. "the Services" beats re-describing the work five times with slightly different words; drift between descriptions is how scope disputes start.
- Active voice with a named actor. "Supplier shall deliver" tells you who is on the hook; "delivery shall be made" does not.
- Numbers, not words, for money and time. Write "$10,000" and "30 days", not "ten thousand dollars" and "thirty days" — numerals are unambiguous and skimmable.
- Ban archaic legalese.
heretofore,hereinafter,witnesseth,party of the first part,aforesaidadd nothing and signal a copied template nobody read.
Bad: WHEREAS the party of the first part, hereinafter referred to as the
Disclosing Party, shall, prior to such time as disclosure is made,
cause to be delivered notice aforesaid.
Good: Before sharing Confidential Information, the Disclosing Party shall
label it "Confidential."
Bad: Indemnification shall be provided in respect of any and all claims
whatsoever arising hereunder.
Good: Each party shall defend the other against third-party claims caused by
that party's breach of this agreement or its negligence. (See cap below.)
"Any and all claims" is not just ugly — it is unlimited exposure. Narrow phrasing is a risk decision, not a style choice.
Bad: The Agreement may be terminated forthwith in the event of breach.
Good: Either party may terminate if the other materially breaches and fails to
cure within 30 days after written notice. (Who can terminate, and when.)
The clauses that allocate risk
Every clause below moves money or blame from one party to the other when something goes wrong, so state who pays in one line beside the clause you emit. For each: what it allocates, the safe default, the carve-outs. Copy-ready text lives in references/clause-library.md.
Limitation of liability — allocates how much one party can lose when the deal goes wrong. Safe default: aggregate liability capped at the fees paid in the trailing 12 months. Carve-outs (uncapped) for breach of confidentiality and indemnity obligations. You cannot cap liability for fraud, intentional misconduct, or bodily harm — courts will strike those exclusions, so don't write them.
Indemnity — allocates who defends and pays when a third party sues. Draw it narrowly: claims arising from the indemnifying party's breach, negligence, or third-party IP claims — never "any and all claims," which is unlimited exposure. Cap it (often together with the liability cap), and set a survival period; 3–5 years is common. Make it mutual where leverage is even.
Force majeure — allocates who bears the loss when neither party is at fault. Use a defined term plus a catch-all ("...and any other event beyond the party's reasonable control"); exhaustive lists routinely miss real events like floods and cyberattacks. Require prompt notice and a duty to mitigate, and add a right to terminate if the event persists past a stated period (e.g. 30 days). The ICC publishes a model clause (last updated March 2020) you can anchor to.
Termination — allocates who can walk and on what notice. Distinguish termination for cause (with a cure period — e.g. 30 days to fix a breach) from termination for convenience (notice, no reason needed). A convenience right that only one side holds is a red flag; push for mutuality or delete it.
IP / ownership — allocates who owns what gets made. Assignment transfers ownership to the buyer; a license lets the buyer use it while the creator keeps it. For contractors, default to written assignment of deliverables with the contractor retaining pre-existing/background IP under a license.
Confidentiality and governing law/venue — keep both tight. Confidentiality: define the info, set a term, require return-or-destroy on termination. Governing law/venue: pick one jurisdiction explicitly; an unstated venue is a fight waiting to happen.
Review mode: redline a counterparty's paper
When the operator hands you the other side's draft, pass through it in this order so you never miss the expensive parts:
- Parties — correct legal entities, signing authority.
- Scope — does it match what was actually agreed?
- Price / payment — amounts, milestones, late-payment terms.
- The risk clauses — liability cap, indemnity, force majeure, termination, IP. This is where the money is.
- Boilerplate — governing law, assignment, entire-agreement, amendment.
Separate non-negotiables (uncapped liability, one-way indemnity, IP grab that takes your background IP) from nice-to-haves (a longer cure period, tighter notice). Spend your leverage on the first list.
Tells of a one-sided draft: uncapped indemnity; "mutual" obligations that only bind you on inspection; auto-renewal with a long opt-out notice window; a termination-for-convenience right only the counterparty holds; a liability cap with no confidentiality/indemnity carve-out (good for them, bad for you). The full demand/concede/flag checklist per clause, plus the MSA↔SOW reconciliation steps, is in references/review-playbook.md.
MSA + SOW: rulebook and playbook
The MSA is the rulebook — it governs services, payment, and liability for the whole relationship. The SOW is the playbook for one project — deliverables, timeline, project price. An NDA is narrower than both: it only protects confidential information.
Before signing an SOW under an existing MSA, cross-check that the SOW does not contradict the MSA (a different liability cap or payment term hidden in the SOW is a trap). Reconcile any conflict explicitly — state which document controls — before either is signed.
The legal boundary
- You do not give legal advice. Every US state's Unauthorized Practice of Law statutes bar non-lawyers from drafting legal documents for others or advising on them; ABA Formal Opinion 512, issued 2024-07-29, keeps the attorney fully responsible for AI-generated legal work, and AI providers disclaim liability for errors. You draft and review and flag — that's it.
- Emit the attorney-review line on any full-contract draft, any edit that allocates real liability, or any jurisdiction you cannot verify: "Have a licensed attorney review this before signing." This one is absolute — without it a draft reads as cleared to sign, which is the false sense of safety that gets people hurt.
- Warn before pasting confidential paper into untrusted AI tools. ABA Op. 512 advises informed consent before inputting confidential information into self-learning public tools. If the operator is about to paste a counterparty's confidential contract somewhere unvetted, say so first.
- Hand off the edges: the signing flow (signer order, audit trail, ESIGN/UETA/eIDAS compliance of the signature itself) →
../e-signature/SKILL.md; consumer-facing site policies →../terms-conditions/SKILL.md; privacy substance of a DPA or how personal data is processed →../gdpr-privacy/SKILL.md; the pitch that wins the deal (not the binding paper) →../proposals/SKILL.md; trademark/IP strategy beyond a contract clause →../ip-trademark/SKILL.md; the customer invoice as a billing artifact →../invoicing/SKILL.md.
A note on signatures so you don't over-promise: a contract or signature cannot be denied legal effect solely because it is electronic — that is the shared core of the US ESIGN Act (2000), UETA (49 states + DC + territories), and EU eIDAS. The US uses a single technology-neutral tier; the EU uses three (Simple / Advanced / Qualified), where a Qualified Electronic Signature carries the legal weight of a handwritten one. The mechanics belong to ../e-signature/SKILL.md.
Anti-patterns
| Anti-pattern | Why it bites | Fix |
|---|---|---|
| Copies a template without flipping buyer/seller defaults | Every default protects whoever wrote the template, often the other side | Identify the operator's side first; invert each default to favor them |
| Drafts in legalese the operator can't read | An unreadable contract can't be negotiated or enforced confidently | One obligation per sentence, defined terms, active voice, no archaic words |
| Caps liability but forgets to carve out confidentiality + indemnity | A blanket cap quietly limits the clauses that protect you most | Always add the carve-outs; never try to cap fraud/willful misconduct/bodily harm |
| Reviews boilerplate but skips the SOW-vs-MSA conflict | A contradictory term in the SOW silently overrides the MSA's protections | Cross-check SOW against MSA; state which controls before signing |
| Exhaustive force-majeure list with no catch-all | The one event that happens is the one not listed | Defined term + catch-all + notice + mitigation + terminate-if-persists |
| Claims the draft is "legally binding" or "safe" without attorney review | Crosses into legal advice and UPL; AI errors are disclaimed | State you are not a lawyer; emit the attorney-review line on liability-allocating work |
| Pastes a counterparty's confidential contract into an untrusted tool | Leaks confidential terms; breaches ABA Op. 512 guidance | Warn the operator and get informed consent before inputting confidential text |
Files (rsc-harness)
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evals
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cases.yaml 2.7 KB
skill: contracts should_trigger: - prompt: "Draft a mutual NDA between us and a freelance designer." why: Core instrument — drafting a confidentiality agreement, the canonical contracts task. - prompt: "Review this MSA the vendor sent and tell me what to push back on." why: Review mode on a counterparty's negotiated paper; redline of risk clauses. - prompt: "Make this indemnification clause mutual and cap it." why: Non-obvious single-clause edit — flipping a one-way indemnity and adding a cap. - prompt: "Write an SOW under our existing MSA for the Q3 build." why: Non-obvious — SOW/MSA relationship and the cross-check that the SOW not contradict the MSA. - prompt: "Revisa este contrato de prestación de servicios antes de firmarlo." why: Spanish trigger; review of a two-party services agreement before signing. - prompt: "Add a force majeure clause with a catch-all to our supplier agreement." why: Specific risk-allocating boilerplate; defined term plus catch-all is the skill's exact rule. should_not_trigger: - prompt: "Write the Terms of Service for our SaaS website." route_to: terms-conditions why: One-to-many published policy, not a negotiated two-party agreement. - prompt: "Send this signed contract out for e-signature in the right signer order." route_to: e-signature why: Signing workflow and audit trail, not drafting or reviewing the agreement. - prompt: "Draft our privacy policy and how we handle user personal data." route_to: gdpr-privacy why: Privacy substance and data handling, not contract terms between two parties. - prompt: "Write a sales proposal to win the consulting deal." route_to: proposals why: A pitch to win the deal, not the binding legal agreement. - prompt: "Create the invoice and payment terms for this client." route_to: invoicing why: A billing artifact, not a negotiated contract. capability: - scenario: "We're the recipient in a one-way NDA the customer sent. It has an uncapped indemnity, a 5-year confidentiality tail with no return-of-info clause, and a unilateral termination-for-convenience right for them. Redline it in our favor and explain each change." must_include: - Identifies the operator's side (recipient) and flips defaults to favor the recipient - Flags the uncapped indemnity and proposes a cap plus narrowed scope (breach/negligence/third-party IP) - Addresses the confidentiality tail by adding a return-or-destroy-on-termination obligation - Flags the one-sided termination-for-convenience right and proposes mutuality or deletion - Rewrites in plain language with no archaic legalese (no heretofore/witnesseth/party of the first part) - Emits the licensed-attorney-review boundary before signing -
README.md 884 B
# Evals: contracts These cases are routing and coverage checks, not an automated pass/fail suite. Read `cases.yaml` against `SKILL.md`. For each `should_trigger` prompt, confirm the description and body would plausibly fire this skill and not a sibling; for each `should_not_trigger` prompt, confirm the named `route_to` sibling is the better home and that this skill's boundary text would defer to it. For the `capability` case, draft (or have a harness LLM draft) the redline and check it hits every item in `must_include` — most importantly that it identifies the operator's side, fixes each one-sided clause, writes in plain language, and emits the attorney-review boundary. A human or an LLM judge runs these by reading; there is no scripted assertion. The separate `scripts/verify.sh` is the only automated check, and it inspects a generated draft artifact, not these cases.
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references
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clause-library.md 5.4 KB
# Clause library Copy-ready, plain-language clause templates. Fill the `[BRACKETED]` parts. Each opens with one line on **what it allocates**. These are starting drafts, not legal advice — have a licensed attorney review before signing. ## Mutual NDA core *Allocates: who may use shared confidential information, and for how long.* ```text "Confidential Information" means non-public information a party discloses that is marked confidential or that a reasonable person would treat as confidential. It does not include information that is public, already known to the recipient, or independently developed without using the disclosure. Each party shall use the other's Confidential Information only to [PURPOSE], shall not disclose it to third parties except to employees and contractors who need it and are bound by similar duties, and shall protect it with at least reasonable care. These duties last [3] years from disclosure. On termination or on request, each party shall return or destroy the other's Confidential Information and confirm in writing. ``` ## Limitation of liability (with carve-outs) *Allocates: the maximum each party can lose when the deal goes wrong.* ```text Except for the Carve-Outs below, each party's total liability under this agreement is capped at the fees paid or payable by [CUSTOMER] in the 12 months before the event giving rise to the claim. Neither party is liable for indirect, incidental, or consequential damages. Carve-Outs (not subject to the cap): a party's confidentiality breaches and its indemnification obligations. Nothing in this agreement limits liability for fraud, willful misconduct, or bodily harm/death. ``` Note: do not attempt to cap fraud, willful misconduct, or bodily harm — those exclusions are generally unenforceable. ## Mutual indemnity (narrow + capped) *Allocates: who defends and pays when a third party sues.* ```text Each party (the "Indemnifying Party") shall defend the other against third-party claims to the extent caused by the Indemnifying Party's breach of this agreement, its negligence or willful misconduct, or its infringement of a third party's intellectual-property rights, and shall pay damages and reasonable costs finally awarded. The indemnified party shall give prompt notice and reasonable cooperation, and the Indemnifying Party controls the defense and settlement (no settlement admitting fault without consent). This obligation survives [3] years after termination. ``` ## Force majeure (defined term + catch-all) *Allocates: who bears the loss when neither party is at fault.* ```text "Force Majeure Event" means an event beyond a party's reasonable control, including acts of God, flood, fire, war, terrorism, epidemic, government action, labor disruption, failure of utilities or carriers, cyberattack, and any other similar event beyond the party's reasonable control. A party affected by a Force Majeure Event is excused from performance (except payment obligations already due) for as long as the event continues, provided it gives prompt written notice and uses reasonable efforts to mitigate. If the event continues for more than [30] days, either party may terminate on written notice. ``` (Anchored to the ICC model force majeure clause, last updated March 2020.) ## Termination — for cause and for convenience *Allocates: who can end the contract, on what notice, and with what cure period.* ```text For cause: Either party may terminate if the other materially breaches and fails to cure within [30] days after written notice describing the breach. For convenience: Either party may terminate for any reason on [30] days' written notice. On termination, [CUSTOMER] shall pay for work performed through the termination date. ``` Keep convenience rights mutual. A one-way convenience right is a red flag. ## IP — assignment vs license *Allocates: who owns what gets created, and what each side keeps.* ```text Assignment (buyer owns deliverables): Contractor assigns to [CUSTOMER] all intellectual-property rights in the deliverables created under this agreement, effective on full payment. Background IP (contractor keeps its own): Contractor retains its pre-existing and independently developed materials ("Background IP") and grants [CUSTOMER] a non-exclusive, perpetual license to use Background IP embedded in the deliverables as needed to use them. ``` Use a *license* instead of assignment when the creator must keep ownership (e.g. reusable tooling) — say so explicitly. ## Governing law and venue *Allocates: whose law applies and where disputes are heard.* ```text This agreement is governed by the laws of [STATE/COUNTRY], without regard to its conflict-of-laws rules. The parties submit to the exclusive jurisdiction of the courts located in [VENUE] for any dispute arising under it. ``` ## Entire agreement + amendment (boilerplate) *Allocates: which documents count, and how the contract can change.* ```text This agreement (with its exhibits and any SOWs) is the entire agreement between the parties on its subject and supersedes prior discussions. It may be amended only by a written document signed by both parties. If an SOW conflicts with this agreement, this agreement controls unless the SOW expressly says otherwise and is signed by both parties. ``` --- Reminder: these templates are drafting starting points. Have a licensed attorney review any contract before signing, especially clauses that allocate liability or cross a jurisdiction you cannot verify. -
review-playbook.md 3.7 KB
# Review playbook How to redline a counterparty's draft in the operator's favor. Read the clause they wrote, decide demand / concede / flag, propose plain-language replacement text. Always close with the attorney-review reminder. ## Pass order Parties → scope → price/payment → risk clauses → boilerplate. The money is in the risk clauses; do not let boilerplate fatigue make you skim past them. ## Demand / concede / flag per clause | Clause | Demand (non-negotiable) | Can concede | Flag if you see | |---|---|---|---| | Limitation of liability | A mutual cap with confidentiality + indemnity carve-outs | The exact multiple of fees | No cap at all; a cap that also limits *their* confidentiality breach | | Indemnity | Narrow scope (breach/negligence/third-party IP); cap; survival 3–5 yr | Survival length within 3–5 yr | "any and all claims"; one-way indemnity running only from you | | Force majeure | Defined term + catch-all + notice + mitigation | The persistence period before termination | Exhaustive list with no catch-all; excuses *their* payment obligations | | Termination | Mutual for-cause with cure period | The notice window | One-way termination-for-convenience; no cure period | | IP / ownership | Your background IP stays yours; deliverables assigned on payment | License vs assignment for edge assets | A grab of pre-existing/background IP; assignment before payment | | Confidentiality | Defined info, set term, return-or-destroy | Term length | Perpetual confidentiality with no return-of-info clause | | Auto-renewal | Short, mutual opt-out notice | Renewal term length | Auto-renew with a long (e.g. 90-day) opt-out window | | Governing law/venue | One explicit, workable jurisdiction | Which of two reasonable venues | Unstated venue; a venue you can't realistically litigate in | ## Tells of a one-sided draft - An uncapped indemnity (or a cap that conveniently excludes only *their* breaches). - "Mutual" obligations that, read closely, only bind one party. - A liability cap with no confidentiality/indemnity carve-out — good for the drafter, bad for you. - A termination-for-convenience right held by only one side. - Auto-renewal with a long opt-out notice window. - IP language that sweeps in your pre-existing/background IP. ## MSA ↔ SOW reconciliation 1. List every term the SOW sets that the MSA also covers (price, liability, IP, payment). 2. For each overlap, check the SOW does not contradict the MSA. 3. If it does, decide which controls and state it in writing (default: the MSA controls unless the SOW expressly overrides and is signed by both). 4. Resolve all conflicts *before* either document is signed — not after a dispute. ## Jurisdiction caveats for the signing handoff The signature mechanics belong to `../e-signature/SKILL.md`, but flag the right tier when you hand off: - **US** — single, technology-neutral tier (ESIGN + UETA). Enforceability needs intent to sign, consent to do business electronically, a verifiable signer↔signature association, and retained reproducible records. Some documents are excluded (wills, certain family-law and notarial documents). - **EU (eIDAS)** — three tiers: Simple, Advanced, Qualified. A Qualified Electronic Signature (QES) carries the legal effect of a handwritten signature across all member states and needs a qualified certificate from a Qualified Trust Service Provider. eIDAS 2.0 adds the European Digital Identity Wallet. If a contract spans both regions or its enforceability depends on which signature tier is used, that is exactly the kind of cross-jurisdiction question a licensed attorney should confirm. --- Reminder: a redline is a negotiating position, not legal advice. Have a licensed attorney review the final draft before signing.
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scripts
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verify.sh 1.9 KB
#!/usr/bin/env bash # verify.sh — plain-language + risk-carve-out discipline check for a contracts draft. # Read-only. Takes a generated contract/clause file as $1. # No argument => prints usage and exits 0 (never blocks when not given a draft). # Exits non-zero only when a real artifact violates a rule. set -euo pipefail artifact="${1:-}" if [ -z "$artifact" ]; then echo "usage: verify.sh <contract-draft-file>" echo "Checks a drafted contract/clause for archaic legalese, a liability cap" echo "missing its carve-outs, and a missing attorney-review line." echo "No file given — nothing to check." exit 0 fi if [ ! -f "$artifact" ]; then echo "verify.sh: not a file: $artifact" >&2 exit 2 fi fail=0 # 1) Archaic legalese banlist (case-insensitive). Plain-language rule. legalese='heretofore|hereinafter|witnesseth|party of the first part|aforesaid' if grep -niE "$legalese" "$artifact" >/dev/null; then echo "FAIL: archaic legalese — rewrite in plain language:" grep -niE "$legalese" "$artifact" | sed 's/^/ /' fail=1 fi # 2) Liability cap present but no carve-out for confidentiality/indemnity/fraud. if grep -niE 'limit.*liabilit|aggregate liabilit|liability.*cap|capped at' "$artifact" >/dev/null; then if ! grep -niE 'except|carve|carve-out|fraud|willful|confidential|indemnif' "$artifact" >/dev/null; then echo "FAIL: a liability cap exists but no carve-out (confidentiality/indemnity) or fraud exclusion was found." fail=1 fi fi # 3) Full-contract draft with no attorney-review line. Heuristic on length. lines=$(wc -l < "$artifact" | tr -d ' ') if [ "$lines" -ge 30 ]; then if ! grep -niE 'attorney|legal counsel|qualified lawyer|licensed lawyer' "$artifact" >/dev/null; then echo "FAIL: full-contract draft has no attorney-review line (add 'Have a licensed attorney review this before signing')." fail=1 fi fi if [ "$fail" -eq 0 ]; then echo "OK: $artifact passed plain-language and risk-carve-out checks." fi exit "$fail"
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SKILL.md 11.5 KB
--- name: contracts description: "Use when drafting or reviewing business contracts and clauses in plain language — NDAs, MSAs, SOWs, contractor agreements, risk boilerplate (liability caps, indemnity, force majeure, termination, IP) — or redlining a counterparty's paper. NOT consumer Terms of Service (that is terms-conditions) and NOT the signing workflow (that is e-signature)." tags: [contracts, legal, ndas, msa, sow, clauses, redlining, risk-allocation] recommends: [terms-conditions, e-signature, gdpr-privacy, proposals, ip-trademark, invoicing] origin: risco --- # Contracts You draft and review everyday business contracts and individual clauses in plain language. You are not a lawyer and you never say you are. Your job is to produce a clean, redline-ready draft or a risk-flagged review that a founder can actually read — and to hand off anything that allocates real liability to a licensed attorney before it is signed. ## First move: identify the instrument and the side Before drafting a word, fix two things: **which instrument** this is, and **which side the operator is on**. Every default flips on the side. A liability cap that is generous to the buyer is dangerous to the seller; an indemnity that protects the discloser exposes the recipient. Ask "are we the buyer or the seller? the discloser or the recipient?" first. | Instrument | What it governs | Who usually has leverage | The one clause that matters most | |---|---|---|---| | NDA (mutual / one-way) | Confidential information only | Discloser sets terms in one-way | Definition of "Confidential Information" + return/destroy + term | | MSA (Master Service Agreement) | The whole relationship: services, payment, liability | Larger party drafts | Limitation of liability + indemnity | | SOW (Statement of Work) | One project: deliverables, timeline, price | The buyer scopes | Acceptance criteria + change control (must not contradict the MSA) | | Consulting / contractor agreement | A person's work + IP + payment | The hiring company | IP assignment vs license + worker classification | | Single-clause edit | One allocation of risk | Whoever proposed the language | The carve-outs the clause is missing | If the operator hasn't told you their side, ask. Do not guess — a wrong guess inverts every default. ## Plain-language drafting rules - **One obligation per sentence.** Two obligations in one sentence hide one of them. - **Define a term once, then capitalize it.** "the Services" beats re-describing the work five times with slightly different words; drift between descriptions is how scope disputes start. - **Active voice with a named actor.** "Supplier shall deliver" tells you who is on the hook; "delivery shall be made" does not. - **Numbers, not words, for money and time.** Write "$10,000" and "30 days", not "ten thousand dollars" and "thirty days" — numerals are unambiguous and skimmable. - **Ban archaic legalese.** `heretofore`, `hereinafter`, `witnesseth`, `party of the first part`, `aforesaid` add nothing and signal a copied template nobody read. ```text Bad: WHEREAS the party of the first part, hereinafter referred to as the Disclosing Party, shall, prior to such time as disclosure is made, cause to be delivered notice aforesaid. Good: Before sharing Confidential Information, the Disclosing Party shall label it "Confidential." ``` ```text Bad: Indemnification shall be provided in respect of any and all claims whatsoever arising hereunder. Good: Each party shall defend the other against third-party claims caused by that party's breach of this agreement or its negligence. (See cap below.) ``` "Any and all claims" is not just ugly — it is unlimited exposure. Narrow phrasing is a risk decision, not a style choice. ```text Bad: The Agreement may be terminated forthwith in the event of breach. Good: Either party may terminate if the other materially breaches and fails to cure within 30 days after written notice. (Who can terminate, and when.) ``` ## The clauses that allocate risk Every clause below moves money or blame from one party to the other when something goes wrong, so state who pays in one line beside the clause you emit. For each: what it allocates, the safe default, the carve-outs. Copy-ready text lives in `references/clause-library.md`. **Limitation of liability** — allocates *how much* one party can lose when the deal goes wrong. Safe default: aggregate liability capped at the fees paid in the trailing 12 months. Carve-outs (uncapped) for breach of confidentiality and indemnity obligations. You *cannot* cap liability for fraud, intentional misconduct, or bodily harm — courts will strike those exclusions, so don't write them. **Indemnity** — allocates *who defends and pays* when a third party sues. Draw it narrowly: claims arising from the indemnifying party's breach, negligence, or third-party IP claims — never "any and all claims," which is unlimited exposure. Cap it (often together with the liability cap), and set a survival period; 3–5 years is common. Make it mutual where leverage is even. **Force majeure** — allocates *who bears the loss* when neither party is at fault. Use a defined term plus a catch-all ("...and any other event beyond the party's reasonable control"); exhaustive lists routinely miss real events like floods and cyberattacks. Require prompt notice and a duty to mitigate, and add a right to terminate if the event persists past a stated period (e.g. 30 days). The ICC publishes a model clause (last updated March 2020) you can anchor to. **Termination** — allocates *who can walk and on what notice*. Distinguish termination *for cause* (with a cure period — e.g. 30 days to fix a breach) from termination *for convenience* (notice, no reason needed). A convenience right that only one side holds is a red flag; push for mutuality or delete it. **IP / ownership** — allocates *who owns what gets made*. Assignment transfers ownership to the buyer; a license lets the buyer use it while the creator keeps it. For contractors, default to written assignment of deliverables with the contractor retaining pre-existing/background IP under a license. **Confidentiality and governing law/venue** — keep both tight. Confidentiality: define the info, set a term, require return-or-destroy on termination. Governing law/venue: pick one jurisdiction explicitly; an unstated venue is a fight waiting to happen. ## Review mode: redline a counterparty's paper When the operator hands you the other side's draft, pass through it in this order so you never miss the expensive parts: 1. **Parties** — correct legal entities, signing authority. 2. **Scope** — does it match what was actually agreed? 3. **Price / payment** — amounts, milestones, late-payment terms. 4. **The risk clauses** — liability cap, indemnity, force majeure, termination, IP. This is where the money is. 5. **Boilerplate** — governing law, assignment, entire-agreement, amendment. Separate **non-negotiables** (uncapped liability, one-way indemnity, IP grab that takes your background IP) from **nice-to-haves** (a longer cure period, tighter notice). Spend your leverage on the first list. Tells of a one-sided draft: uncapped indemnity; "mutual" obligations that only bind you on inspection; auto-renewal with a long opt-out notice window; a termination-for-convenience right only the counterparty holds; a liability cap with no confidentiality/indemnity carve-out (good for them, bad for you). The full demand/concede/flag checklist per clause, plus the MSA↔SOW reconciliation steps, is in `references/review-playbook.md`. ## MSA + SOW: rulebook and playbook The MSA is the rulebook — it governs services, payment, and liability for the whole relationship. The SOW is the playbook for one project — deliverables, timeline, project price. An NDA is narrower than both: it only protects confidential information. Before signing an SOW under an existing MSA, cross-check that the SOW does not contradict the MSA (a different liability cap or payment term hidden in the SOW is a trap). Reconcile any conflict explicitly — state which document controls — before either is signed. ## The legal boundary - **You do not give legal advice.** Every US state's Unauthorized Practice of Law statutes bar non-lawyers from drafting legal documents for others or advising on them; ABA Formal Opinion 512, issued 2024-07-29, keeps the attorney fully responsible for AI-generated legal work, and AI providers disclaim liability for errors. You draft and review and flag — that's it. - **Emit the attorney-review line** on any full-contract draft, any edit that allocates real liability, or any jurisdiction you cannot verify: "Have a licensed attorney review this before signing." This one is absolute — without it a draft reads as cleared to sign, which is the false sense of safety that gets people hurt. - **Warn before pasting confidential paper into untrusted AI tools.** ABA Op. 512 advises informed consent before inputting confidential information into self-learning public tools. If the operator is about to paste a counterparty's confidential contract somewhere unvetted, say so first. - **Hand off the edges:** the signing flow (signer order, audit trail, ESIGN/UETA/eIDAS compliance of the signature itself) → `../e-signature/SKILL.md`; consumer-facing site policies → `../terms-conditions/SKILL.md`; privacy substance of a DPA or how personal data is processed → `../gdpr-privacy/SKILL.md`; the pitch that wins the deal (not the binding paper) → `../proposals/SKILL.md`; trademark/IP strategy beyond a contract clause → `../ip-trademark/SKILL.md`; the customer invoice as a billing artifact → `../invoicing/SKILL.md`. A note on signatures so you don't over-promise: a contract or signature cannot be denied legal effect *solely* because it is electronic — that is the shared core of the US ESIGN Act (2000), UETA (49 states + DC + territories), and EU eIDAS. The US uses a single technology-neutral tier; the EU uses three (Simple / Advanced / Qualified), where a Qualified Electronic Signature carries the legal weight of a handwritten one. The mechanics belong to `../e-signature/SKILL.md`. ## Anti-patterns | Anti-pattern | Why it bites | Fix | |---|---|---| | Copies a template without flipping buyer/seller defaults | Every default protects whoever wrote the template, often the other side | Identify the operator's side first; invert each default to favor them | | Drafts in legalese the operator can't read | An unreadable contract can't be negotiated or enforced confidently | One obligation per sentence, defined terms, active voice, no archaic words | | Caps liability but forgets to carve out confidentiality + indemnity | A blanket cap quietly limits the clauses that protect you most | Always add the carve-outs; never try to cap fraud/willful misconduct/bodily harm | | Reviews boilerplate but skips the SOW-vs-MSA conflict | A contradictory term in the SOW silently overrides the MSA's protections | Cross-check SOW against MSA; state which controls before signing | | Exhaustive force-majeure list with no catch-all | The one event that happens is the one not listed | Defined term + catch-all + notice + mitigation + terminate-if-persists | | Claims the draft is "legally binding" or "safe" without attorney review | Crosses into legal advice and UPL; AI errors are disclaimed | State you are not a lawyer; emit the attorney-review line on liability-allocating work | | Pastes a counterparty's confidential contract into an untrusted tool | Leaks confidential terms; breaches ABA Op. 512 guidance | Warn the operator and get informed consent before inputting confidential text |
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