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Contract Red Flag Scanner

Most people sign contracts they haven't fully read because the alternative is paying a lawyer to read every page. The Contract Red Flag Scanner gives you the first-pass review — the clauses that need attention, the protections that are missing, the questions to ask your solicitor — before you spend the money.

What this skill does

Most contract problems aren't hidden in subtle legal language — they're in the standard clauses people skim past. Unlimited liability. One-sided indemnification. Auto-renewal with a 90-day opt-out window buried on page 7. IP assignment that sweeps up work you did before the engagement started. This scanner runs a structured first-pass across seven risk categories — payment terms, IP, liability and indemnification, termination, non-compete and restrictive covenants, auto-renewal, and dispute resolution — and flags every clause that's unusual, one-sided, or missing.

Findings get graded. Red is a clause that should be negotiated or removed before signing. Yellow is unusual or one-sided language worth questioning. Missing is an expected protection that isn't there — often the most dangerous category, because a contract with no liability cap is worse than one with a high cap. Every flag includes the actual quoted clause, a plain-English translation of what it means in practice ("they could claim their entire lost profits from you with no cap" instead of "unlimited consequential damages"), a note on what standard practice looks like in fair contracts, and a specific suggestion for what to negotiate.

The scan is honest about what it didn't see. If you only paste payment terms, the other six categories get marked "not reviewed — cannot assess." A partial review never implies a full one. You also get a key terms summary table — duration, payment, termination notice, IP ownership, liability cap, non-compete scope, governing law — so the headline numbers sit on one page. And the scan ends with a prioritised question list for your solicitor, tied to the specific flags found. That's where the leverage is: paying a solicitor £200 to answer five sharp questions, instead of £800 to find the questions and answer them.

This is a first-pass review tool, not legal advice. It identifies common red flags and helps you ask better questions. It does not replace professional legal review — especially for contracts involving significant money, long-term commitments, complex liability, or anything jurisdiction-sensitive. A qualified solicitor should review anything material before you sign. The skill is a starting point for that review, not a substitute for one.

When this triggers

  • ·A client or supplier has sent a contract and you want a sanity check before you sign
  • ·You're using a downloaded template and want to know what's missing from it
  • ·The contract is small enough that paying a solicitor feels like overkill — but you still want a second pair of eyes
  • ·You want a prioritised list of questions to bring to a solicitor instead of paying them to find the questions
  • ·A renewal landed and you want to know if anything in it changed from last year

Example

Trigger

User pastes a 4-page SaaS service agreement and says: 'About to sign this for a £900/month contract. Anything I should worry about?'

Output

Contract type: SaaS Service Agreement Sections reviewed: 7/7 categories Risk level: Medium — 2 red, 3 yellow, 1 missing. RED FLAGS 1. Unlimited liability (Section 9.2) Clause: "Customer shall indemnify Provider against any and all losses including lost profits..." Risk: if their forecast misses and they blame your data, you owe them their lost profits with no cap. Standard practice: liability capped at 12 months' fees. Suggestion: ask for cap at contract value. 2. Auto-renewal with 90-day opt-out [details + standard practice + suggestion] YELLOW FLAGS (3) MISSING: no force majeure clause for either party. Key Terms Summary table + Questions for your solicitor.

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What you get

  • 170-line SKILL.md, ready to drop into ~/.claude/skills/
  • Tested through 3 Karpathy-loop iterations (versions v1.0.0 → v1.3.0)
  • Triggers automatically when relevant — no command to remember
  • Lifetime updates as the skill is refined further

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