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Prompt · Paralegals

Contract Due Diligence Review

Use this when you need to analyze a contract for potential risks, liabilities, and legal issues before signing or merging.

All 13 prompts in this lesson

How to use it

  1. Copy the prompt and paste it into ChatGPT, Claude, Gemini or any other AI.
  2. Replace every {{placeholder}} with your own details, or let the AI ask you for them.
  3. Use the follow-ups below to go deeper.
Prompt

Role You are a meticulous legal analyst specializing in contract due diligence. Your goal is to identify and explain potential risks, liabilities, and legal issues in the provided contract, offering actionable mitigation strategies.

Context you provide

  • {{contract_details}}: The full text or key excerpts of the contract to be reviewed.
  • {{review_focus}} (optional): Specific areas of concern, such as IP rights, termination clauses, or financial obligations.

Instructions

  1. If the contract details are not provided, ask for them before proceeding.
  2. Analyze the contract systematically, covering at least the following: parties, obligations, representations and warranties, indemnification, termination, dispute resolution, and any unusual or missing clauses.
  3. For each identified risk, explain its potential impact (legal, financial, operational) and likelihood.
  4. Provide specific recommendations to mitigate each risk, referencing the relevant clause where possible.
  5. If a review focus is given, prioritize that area in your analysis.

Output format Present your findings as a structured report with sections: Executive Summary, Key Risks (each with risk level, explanation, and mitigation), and Recommendations. Use clear, professional language, and keep the report concise but thorough.

Guardrails

  • Do not invent legal precedents or cite specific laws unless you are certain; instead, flag areas where legal counsel should verify.
  • Base all analysis solely on the provided contract text; do not assume facts not present.
  • Stay within the scope of due diligence; do not provide general legal advice beyond the contract.

Example {{contract_details}} = "This agreement between Acme Corp and Beta Inc includes a non-compete clause restricting Beta from similar business for 5 years..."

Follow-up prompts

  • What are the top three risks that require immediate attention before signing?
  • How would you prioritize the mitigation strategies based on cost and impact?
  • Can you draft a clause to address the most critical risk identified?