Legal Process Analysis Checklist

Everyone’s using AI to draft contracts now. Fine. So are we. But here’s the part no one tells you: You don’t need to be a better drafter anymore. You need to be a better reviewer of something that sounds right but isn’t. After going through ~100+ AI-generated agreements in the last few months, this is the checklist I actually use before letting anything go out: 1. Defined terms: are they used consistently throughout the document? 2. Any term used before it is defined? This happens more often than expected. 3. Indemnity: does it properly connect with the limitation of liability clause? 4. Liability cap: does it apply universally, or are there hidden carve-outs? 5. “Reasonable efforts”: is this defined, or left vague? 6. Payment terms: is the trigger clearly stated, or open to interpretation? 7. Late payment: is there a real consequence, or just soft language? 8. Termination: what happens after termination? Consider money, data, and deliverables. 9. Survival clause: does it clearly specify what survives termination? 10. Force majeure: is it tailored to the agreement, or just generic wording? 11. Governing law, jurisdiction, and arbitration: are they aligned and coherent? 12. Notice clause: is it practical, or outdated? 13. Deliverables: are they properly described, or assumed? 14. Timelines: are they fixed, or left as “mutually agreed”? 15. Dependencies: are responsibilities and reliance clearly documented? 16. IP clause: are ownership and licensing clearly distinguished? 17. Confidentiality: is the duration reasonable, or indefinitely broad? 18. Warranties: are they too broad, too narrow, or ineffective? 19. Dispute clause: is it practical and usable, or merely decorative? 20. Boilerplate: is it intentional, or just copied over? 21. Any clause that sounds impressive but lacks substance: remove it. Most AI-generated contracts do not fail because they are incorrect. They fail because they are almost correct. And “almost correct” is where ambiguity lives. At first glance, everything appears polished. The structure is there, the clauses look familiar, and the language sounds professional. But on closer inspection, small gaps begin to appear: undefined terms, misaligned clauses, vague obligations, or assumptions that were never written down. How are you dealing with AI contracts? #legalcontracts #legalagreements #aiforlawyers

How I Use AI as In-House Counsel: When Someone Wants Out Oh no. Someone's terminating. Now that termination clause you drafted back when the contract was negotiated is about to be put under a microscope. Nail biting. …Or maybe it’s your colleague’s clause that’s up for review. (Less nail biting — for you. 😎 ) Or maybe you’re confident in your language and your only thought is: “Ugh, how long will this take?” AI can help. Instead of combing through 40+ pages manually, here’s a real-world prompt I’ve used with my enterprise-grade Legal AI tool. 🧠 The Prompt: [Attached the agreement.] # Instructions 1. Review the attached document thoroughly to analyze the termination provisions and their impact on [your party]. 2. Identify and extract all relevant clauses related to termination, including: a. Client termination rights and procedures  b. Payment obligations upon termination  c. Consequences for [your party] when [counter party] terminates  d. Outstanding payment provisions  e. Work completed vs. work in progress compensation  f. Any termination fees or penalties  g. Post-termination obligations and survival clauses  h. Transition assistance requirements  i. Return or destruction of materials/data  j. Intellectual property rights post-termination 3. Create a comprehensive analysis structured as follows: a. Termination Rights Analysis, including notice and cure periods b. Payment Consequences, including in-progress work, expenses, and penalties c. Non-Financial Consequences, including transition requirements, IP rights, material return/destruction, and ongoing restrictions d. Risk Assessment, including financial operation, reputational, and dispute vulnerabilities 4. For each point in your analysis:  a. Provide exact quotes from the document using tags  b. Explain the practical implications for [your party]  c. Highlight any ambiguous language that could create disputes  d. Identify any missing provisions that would typically be included 5. Always cite claims immediately after referencing content from the document, including exact contract language in quotation marks for key provisions 💡 Not every termination clause will need such a comprehensive prompt so adjust accordingly. #LegalAI #InHouseCounsel #RiskManagement

If you're looking for a process to get the hang of reading legislation, here’s a checklist I use whenever I need to read an Act I’m not familiar with to solve a client's problem: 1️⃣ Is the Act in force? This means checking the commencement date, whether the Act applies retrospectively, and if there are any relevant transitional provisions, Regulations or amending Acts. 2️⃣ Extent and application There’s usually a section that sets out exactly when the Act is meant to apply. 3️⃣ Object of the Act Acts are interpreted in such a way to give effect to its purpose of object. This is usually also clearly stated in the Act, but sometimes we’ll need to refer to the Bill or Reading Speeches to get a better idea. 4️⃣ Shortlist the relevant provisions When scanning the table of contents, we can pick out the provisions that look relevant to our client’s issue. 5️⃣ Reading the provisions broadly Even if a particular section within the Act seems to provide the answer, the meaning of that section could be affected by other provisions. We’ll need to follow every definition and cross-referenced section to make sure that nothing’s missed. When reading these sections, it’s handy to list out any sections, words or phrases that either support or adversely affect our client’s problem. 6️⃣ Case law With our list, we can check if there’s any case law that provides any further guidance on how we would answer our client’s problem. Anything else you look at? ----- Btw, if you’re an Australian lawyer who works with Federal legislation – maybe you’ve found that the Federal Register of Legislation provides a pretty bad user experience. If so, you should check out the Chrome extension (Auxtract) that my colleague Raymond Sun made. It transforms the official Federal Register of Legislation website into an interactive document with clickable clauses and side-by-side definitions. I recommend using giving the free trial a go. #lawyers #legalprofession #legaltech #legislation

Over 60% of M&A fail due to poor due diligence In India, the stakes are even higher 𝐃𝐚𝐲 𝟰𝟰/𝟕𝟓 𝐨𝐟 𝐭𝐡𝐞 𝐬𝐞𝐫𝐢𝐞𝐬 "𝐋𝐚𝐰 𝐔𝐧𝐩𝐥𝐮𝐠𝐠𝐞𝐝: 𝐓𝐡𝐞 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐥𝐚𝐧𝐝𝐬𝐜𝐚𝐩𝐞" In the rush to close deals, many stakeholders skip  Legal due diligence, which is the most dangerous mistake This mistake can cost companies: ➛ Billions ➛ Wreck reputations ➛ Leads to regulatory setbacks Try to understand this, why these deals fail The answer often lies in one thing ➛ 𝐈𝐧𝐚𝐝𝐞𝐪𝐮𝐚𝐭𝐞 𝐥𝐞𝐠𝐚𝐥 𝐝𝐮𝐞 𝐝𝐢𝐥𝐢𝐠𝐞𝐧𝐜𝐞 Here’s a detailed checklist that can set the foundation: ✅ Corporate Structure & Governance ➛ Review the company’s governance documents (AoA, shareholder agreements), undisclosed director interests (Companies Act, Section 173). ✅ Intellectual Property (IP) ➛ Audit patents, trademarks, and licenses. Ensure proper IP transfer. IP disputes can cripple post-merger success. ✅ Financial Health & Liabilities ➛ Scrutinise financial statements. Look for hidden liabilities and off-balance sheet items (Companies Act, Section 128). ✅ Key Contracts & Agreements ➛ Review third-party contracts for “change of control” clauses. Watch out for any clauses that could impact the merger. ✅ Ongoing Litigation & Disputes ➛ Investigate all ongoing legal disputes. Hidden litigation can derail the deal and trigger penalties (CrPC, IBC). ✅ Regulatory Compliance & Approvals ➛ Verify compliance with FEMA, ITA, and industry-specific laws. Necessary regulatory approvals be obtained (Competition Act, 2002). ✅ Employment Issues & Labor Laws ➛Ensure compliance with labour laws like the Industrial Disputes Act and review employee disputes and severance obligations. ✅ Tax Liabilities ➛ Assess pending tax liabilities, audits, and ongoing investigations (Income Tax Act, 1961). PS: Have you done the case study of the major merger flops in the corporate industry like "Microsoft and Nokia"? It does give you a practical viewpoint of companies.