Classify contract Key Terms

You can classify or categorize contract key terms according to your custom business rules. Classification provides a quick overview of critical key terms, allowing you to identify those that require attention. It helps in risk assessment by highlighting potential issues, drawing attention to non-standard clauses, and distinguishing between favorable and unfavorable terms within the contract.

To classify each key term, you must define rules in Groovy and validate them beforehand. You have the flexibility to create your own classification codes, such as 'Standard,' 'Non-Standard,' 'Favorable,' 'Unfavorable,' 'Neutral,' and more. For instance, a potential rule for the renewal percentage key term could be:

If the renewal percentage exceeds 5, classify it as 'Favorable.'
If the renewal percentage falls between 3 and 5, consider it 'Neutral.'
If the percentage is below 3, classify it as 'Unfavorable.'

Classifying key terms enables stakeholders to swiftly analyze the contract's critical elements, enabling them to make informed decisions.

Steps to Enable

Use the Opt In UI to enable this feature. For instructions, refer to the Optional Uptake of New Features section of this document.

Offering: Enterprise Contracts

Tips And Considerations

The opt-in Classify Contract Key Terms can be enabled only if the parent opt-in Extract Key Terms From Contract Documents Using Generative AI is enabled.

Key Resources

• For detailed information, please refer the play book How do I extract and classify key terms from contract documents?
• Refer Extract Key Terms from Contract Documents using Generative AI for extracting key terms.