Contract AI Models

Overview

The Contract AI Model is a crucial tool for creating playbooks. It allows you to define specific clauses and terms for contract analysis, providing a structured framework for your playbook.

Before you get started, familiarize yourself on how we define Clauses and Terms.

What is a Clause?

A clause is a broader, standalone section in a legal document that addresses a specific subject matter or requirement. It typically encompasses one or more clauses.

Key Characteristics of Clauses:

• Broader in scope
• Usually contains multiple related clauses
• Often numbered as main sections in an agreement (e.g., 1.0, 2.0)
• Provides comprehensive coverage of a specific aspect
  
  

What is a Term?

A Term is a specific, smaller section within a clause that addresses a particular point, condition, or requirement. Terms are the building blocks that make up clauses.

Key Characteristics of Terms

• Narrower in scope
• Focuses on a single specific point
• Usually numbered as subsections in an agreement (e.g., 1.1, 1.2)
• More detailed and specific
• Addresses individual requirements or conditions
  
  

Examples of Clauses and Terms

Clauses	Terms
Payments	Payment Terms Late Payment Penalty Payment Currency Invoice Schedule
Limitation of Liability	Cap on Monetary Damage Exclusion of Indirect/Consequential Damages Carve-Outs/Exceptions Time Limitations Mutual vs. Unilateral Limitations Insurance-Related Clauses
Termination Rights	Termination for cause Termination for convenience Notice Requirements Post-Termination Obligations
Indemnification	Scope of Indemnification Legal Fees Litigation Management Notice Requirements Exceptions

Key Differences Between Clauses & Terms

Aspect	Clause	Term
Scope	Broader, comprehensive (like “Payment”)	Narrow, specific (like "Late Payment Penalty" or "Payment Currency”, etc.)
Structure	Contains multiple clauses	Individual component
Numbering	Main sections (1.0, 2.0)	Subsections (1.1, 1.2)
Purpose	Establishes general rule	Defines specific details
Independence	Can stand alone	Usually part of a Clause

Creating a New Contract AI Model

1. Navigate to AI Design Studio > Contract AI Models and click the Add New Model button.
2. Fill in the following details:
   1. Contract AI Model Name - Enter a unique Contract AI Model name.
   2. Description - Describe this Contract AI model's use case and its general purpose.
   3. Click Save.
3. Adding Clause to the Model: In the Clauses section, click the + Add Clause button and enter the following details:
   1. Clause Name - Enter a unique Clause name for the Model.
   2. Business Description - Describe the Clause from the perspective of your business and use case.
4. Adding Terms to the Model: For each Clause, click the + Add Term button, enter the following details:
   1. Term Name - Enter a unique Term name for the clause.
   2. Business Description - Describe the term from the perspective of its parent Clause.
   3. Explain how to identify this term - Describe any key elements that uniquely identify the term, focusing on specific phrases, common terms, or structural patterns.
   4. Click Save.
5. Repeat steps for adding Clauses and Terms to complete your Contract AI Model.

Managing Clauses and Terms

Editing Clauses & Terms Guidelines

1. Navigate to AI Design Studio > Contract AI Models and select the target Contract AI Model from the list.
2. In the Clauses section, select Clauses or Terms for which you want to make edits, make changes and click Save.

Deleting Clauses & Terms

1. Navigate to AI Design Studio > Contract AI Models and select the target Contract AI Model from the list.
2. In the Clauses section, click the Delete button against the Clause or term and confirm deletion.
   Note that you must delete all associated Terms before you delete a Clause.

Reordering Clauses, Terms, and Data Elements

You can customize the order in which Clauses, Terms, and Data Elements appear in your Contract AI Model. The order you set here will be reflected directly on the Accounts: Contract Summary page, ensuring the structure matches how your team reviews contracts.

1. Navigate to AI Design Studio > Contract AI Models and select the target Contract AI Model from the list.
2. In the Clauses section, locate the Clause, Term, or Data Element you want to move.
3. Drag and drop items into your desired order.
4. The new order is saved automatically and will be reflected on the Accounts: Contract Summary page.

Viewing and Downloading Contract AI Model

To access a Clause Analysis Model, navigate to AI Design Studio > Contract AI Models. This displays a list of all created Contract AI models.

• Viewing Contract AI Model: Click the PDF icon next to the desired Contract AI model to open the in the current browser tab.
• Downloading Contract AI Model: While viewing the Contract AI model, locate Download as PDF icon on top of the PDF, click the icon to save it to your system.
• Deleting Contract AI Model: Click the Delete icon next to the desired Contract AI model.