Sample AI contract review:
a short service agreement
This is what a Clause DNA review looks like. The contract is a made-up sample between two fictional companies, and the result is fixed. No sign-up needed to read it.
Sample, not advice. CloviLegal is software. It does not give legal advice and is not a law firm. A review flags wording that may need a closer look; it does not say what the law requires for your situation. For that, talk to a licensed attorney.
1. The sample contract
Sample: Services Agreement between Example Studio LLC ("Client") and Sample Vendor Inc. ("Provider")
4. Fees. Client shall pay Provider $2,000 per month, invoiced monthly in advance. Fees are non-refundable.
7. Limitation of liability. Provider's total liability for all claims arising under this Agreement shall not exceed $500, regardless of the nature or basis of the claim.
9. Term and termination. This Agreement renews automatically for successive 12-month terms unless either party gives written notice at least 90 days before the end of the current term.
11. Ownership. Provider retains all rights in materials created under this Agreement and grants Client a license to use them.
2. What Clause DNA flagged
| Clause | Flag | In plain English | Questions you might ask |
|---|---|---|---|
| 7. Limitation of liability | Look closely | All claims combined are capped at $500, which is a fraction of one month's fee. | Could the cap be tied to fees paid under the agreement? Are fraud, willful misconduct or confidentiality breaches meant to be inside the cap? |
| 9. Term and termination | Check | The contract renews for a full year unless you give notice 90 days before the end of the term. | Is there a way to end the agreement for convenience? Can the notice period be shorter, and will you get a reminder? |
| 11. Ownership | Check | The provider keeps ownership of what it makes for you; you get a license. | Does the license cover everything you plan to do with the work, including after the contract ends? Do you need to own it outright? |
| 4. Fees | Note | Fees are paid in advance and are non-refundable. | What happens to a prepaid month if the provider stops work early? |
3. What this review cannot do
- It does not know your business, your other agreements or what you discussed with the other side.
- It does not decide whether a clause is enforceable where you are; that depends on the law of your state or country.
- It can miss things. Read the whole contract yourself, and ask a licensed attorney about anything that matters to you.
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