contract-red-flags

Contract Red Flags

Most people sign contracts they haven't really read — and the damage lives in the clauses they skimmed: auto-renewals, one-sided termination, liability waivers, IP grabs, hidden fees. This reads the agreement as a wary friend would, translates the risky bits into plain language, and tells you what to question or push back on before you sign — while being clear it's not legal advice and some contracts warrant a lawyer.

What This Skill Produces

• A plain-English flag list — the clauses that could hurt you, translated out of legalese
• What each means for you — the real-world consequence, not the wording
• Questions to ask — what to clarify with the other party before signing
• Suggested changes — reasonable edits or removals to request
• A severity read — which flags are dealbreakers vs. minor, and when the contract is big enough to warrant a lawyer

Required Inputs

Ask for these if not provided:

• The contract — the text or the key clauses (paste what you can)
• The type & stakes — employment, lease, freelance/SOW, service, sale, NDA — and how much rides on it
• Your role — which side you're on
• Your concerns — anything specific worrying you
• Region — laws vary; affects enforceability and rights

Framework: Translate, Flag, Question

1. Read for the common traps. Auto-renewal/evergreen terms, long lock-ins and exit/termination terms, liability and indemnity, IP ownership, non-competes, fee/late-charge clauses, unilateral change rights, and dispute/arbitration terms.
2. Translate to consequences. For each flag, say plainly what it means for the person ("they can cancel on 7 days' notice; you can't"), not just the clause.
3. Separate dealbreakers from noise. Rank flags by real risk so the person knows what to fight for vs. accept.
4. Give questions and edits. Offer specific things to ask and reasonable changes to request — most terms are negotiable if you raise them.
5. Know the limit. Enforceability varies by jurisdiction and you're not giving legal advice — flag high-stakes or complex contracts for a lawyer.

Output Format

Contract review: [type] · your side: [x] · stakes: [level]

Red flags (plain English)

| Clause | What it says | What it means for you | Severity |

|---|---|---|---|

| [name] | [plain summary] | [consequence] | 🚩/⚠️/ℹ️ |

Ask before signing: [clarifying questions].

Request these changes: [reasonable edits/removals].

Dealbreakers: [the ones to resolve or walk].

> Not legal advice. Enforceability varies by jurisdiction. For high-stakes or complex agreements, have a qualified lawyer review it.

Quality Checks

• [ ] Flags the common trap clauses present in the contract
• [ ] Translates each into a real-world consequence, not legalese
• [ ] Ranks flags by severity (dealbreaker vs minor)
• [ ] Provides questions to ask and specific changes to request
• [ ] Flags when the stakes warrant a lawyer
• [ ] States it isn't legal advice / laws vary

Anti-Patterns

• Restating legalese without translating the consequence.
• Flagging everything equally with no severity.
• Missing the quiet killers (auto-renewal, unilateral change, arbitration).
• Asserting enforceability as fact across jurisdictions.
• Reassuring on a high-stakes contract that truly needs a lawyer.

Example Trigger Phrases

• "Check this freelance contract before I sign it."
• "What am I actually agreeing to in this lease?"
• "Are there red flags in this employment offer's fine print?"
• "Explain the risky clauses in this service agreement."
• "This NDA feels one-sided — what should I push back on?"