Module 4 of 5 · Intermediate · 10 min read

Legal documents

Understand contracts, prepare questions and draft simple documents with AI, and know when you need a lawyer.

Key takeaways

1AI is good at explaining legal language and spotting clauses to ask about.
2Law varies by jurisdiction and models make up citations. Verify everything.
3Use AI to prepare for a lawyer, not to replace one for anything important.
4Check confidentiality before uploading contracts or case details.

01Read this first

Legal outcomes depend on jurisdiction, exact wording and facts. Models can misstate the law, apply the wrong country's rules, and invent cases and citations; courts have sanctioned or reprimanded lawyers for filing AI-generated briefs citing cases that don't exist.

Watch out

Not legal advice. For contracts, disputes, employment, property, immigration, family or criminal matters, consult a qualified lawyer licensed where you are. Verify any statute, rule or case in official sources.

02Where AI helps

Arriving at a lawyer with an organised timeline and specific questions can save time and money.

Explaining contracts and legal terms in plain language.
Flagging unusual, one-sided or missing clauses to ask about.
Comparing two versions of a document and summarising changes.
Organising facts, timelines and documents before seeing a lawyer.
Drafting simple, low-stakes documents and letters for review.
Preparing questions for your lawyer.

03The workflow

The value is understanding what you're looking at and asking better questions.

Check confidentiality: remove names and sensitive details if the tool isn't approved for them.
Ask for a plain-language explanation and a clause-by-clause summary.
Ask what is unusual, risky or missing, and why.
Verify any legal rule or citation in official sources.
Prepare a list of questions and negotiation points.
For anything significant, have a lawyer review before you sign or send.

04Prompt: explain a contract

Ask for plain language and specific flags, tied to clause numbers.

Example

I'm {{role, e.g. a freelancer}} reviewing the contract in <contract> from {{other party}}. Jurisdiction: {{place}}. 1. Summarise what I'm agreeing to in plain language, clause by clause. 2. Flag clauses that are unusual, one-sided or risky for me (payment terms, liability, indemnity, IP ownership, termination, non-compete, auto-renewal), quoting the clause number and wording. 3. List anything commonly included that is missing. 4. Give me questions to ask a lawyer. Don't state what the law requires; mark anything that depends on local law as 'check with a lawyer'.

05Prompt: compare versions

Redlines are tedious to read; AI is good at it.

Example

Compare version A in <a> with version B in <b>. List every substantive change as a table: clause, what changed (quote both), and whether it is better, worse or neutral for {{my side}}, with a one-line reason. Ignore formatting-only changes, but list them in a short note at the end.

06Prompt: prepare for a lawyer

Organised facts make legal advice faster and cheaper.

Example

Help me prepare for a meeting with a lawyer about {{issue}}. From my notes in <notes>, produce: a dated timeline of events, a list of the documents I have and those I should find, the key facts that seem disputed, what outcome I want, and 10 questions to ask. Don't give legal conclusions.

07Pitfalls

AI can make legal documents less intimidating. It can't take responsibility for the outcome.

Invented citations: never rely on a case or statute you haven't found in an official source.
Wrong jurisdiction: rules differ between countries and states.
Confidentiality: uploading privileged or confidential documents to unapproved tools may breach duties or agreements.
Templates that don't fit: generic documents can miss requirements where you are.
Deadlines: legal time limits can be strict. Don't let AI research delay getting real advice.

Finished reading?

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