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Third-Party Service Contract Analysis

Provides a critical and detailed analysis of a service contract presented by the other party, identifying abusive clauses, risks, and negotiation points.

Review service contracts received from clients, vendors, or partners to identify disadvantageous clauses, protection gaps, and items requiring negotiation before signing.

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Prompt objective

Review service contracts received from clients, vendors, or partners to identify disadvantageous clauses, protection gaps, and items requiring negotiation before signing.

Real use case

The digital marketing agency Crescer Digital received a service contract from TopBuy Supermarket Chain—a client representing 40% of their revenue. The contract is 18 pages long and includes unlimited liability clauses, 90-day payment terms, and termination-at-will provisions. The founders need to know what to accept, negotiate, or reject.

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MY COMPANY DESCRIPTION AND SIZETHEIR COMPANY DESCRIPTION AND RELATIVE SIZEDESCRIPTIONAMOUNTDATEPASTE CONTRACT TEXT OR KEY SECTIONS HERESIGN / NEGOTIATE / REJECTCONTRACT EXCERPT

Replace the placeholders with your own context before you run the prompt. That usually improves the first output more than adding more instructions later.

Prompt

Critically analyze the following service contract I received from the other party, which I need to decide whether to sign, negotiate, or reject.\\\\\\\\n\\\\\\\\n**Context:**\\\\\\\\n- My role (service provider): [MY COMPANY DESCRIPTION AND SIZE]\\\\\\\\n- Other party (client): [THEIR COMPANY DESCRIPTION AND RELATIVE SIZE]\\\\\\\\n- Nature of services: [DESCRIPTION]\\\\\\\\n- Monthly/total contract value: $[AMOUNT]\\\\\\\\n- Financial dependency: this client represents [X]% of my revenue\\\\\\\\n- Response deadline: [DATE]\\\\\\\\n\\\\\\\\n**[PASTE CONTRACT TEXT OR KEY SECTIONS HERE]**\\\\\\\\n\\\\\\\\nProvide a structured analysis in 6 parts:\\\\\\\\n\\\\\\\\n## 1) Executive Summary (for readers who need the bottom line)\\\\\\\\n- Overall status: [SIGN / NEGOTIATE / REJECT]\\\\\\\\n- Top 3 critical risks\\\\\\\\n- Top 3 priority negotiation points\\\\\\\\n- Maximum financial risk estimate if everything goes wrong: $[AMOUNT]\\\\\\\\n\\\\\\\\n## 2) Clause-by-Clause Analysis\\\\\\\\nFor each relevant clause, evaluate:\\\\\\\\n- **What it says**: plain-language summary\\\\\\\\n- **What it means in practice**: real operational implications\\\\\\\\n- **Classification**: Favorable / Neutral / Unfavorable / Abusive\\\\\\\\n- **Legal basis**: applicable civil code provision or specific legislation\\\\\\\\n- **Recommendation**: accept / negotiate change / request removal\\\\\\\\n\\\\\\\\n**Priority clauses to examine:**\\\\\\\\n- Scope of services (is it clear? does it include implied work for hire?)\\\\\\\\n- Compensation and payment terms (timeline, late fees, adjustments)\\\\\\\\n- Termination: conditions, notice period, termination fees\\\\\\\\n- Liability: limited or unlimited liability\\\\\\\\n- Intellectual property: who owns what is created?\\\\\\\\n- Confidentiality: scope and duration\\\\\\\\n- Non-compete: duration and territory (if applicable)\\\\\\\\n- Dispute resolution and governing law\\\\\\\\n- Penalties and liquidated damages\\\\\\\\n\\\\\\\\n## 3) Abusive or Unenforceable Clauses\\\\\\\\n- Identify clauses that may violate:\\\\\\\\n  - Good faith and fair dealing principles\\\\\\\\n  - Consumer protection laws (if applicable)\\\\\\\\n  - Employment or labor laws (if relationship could be reclassified)\\\\\\\\n  - Data protection regulations\\\\\\\\n- For each abusive clause: legal basis and contestation strategy\\\\\\\\n\\\\\\\\n## 4) Protection Gaps\\\\\\\\n- What the contract does NOT address that it should:\\\\\\\\n  - Delivery timeline for materials from the other party\\\\\\\\n  - Acceptance criteria for deliverables\\\\\\\\n  - Change order process\\\\\\\\n  - Liability cap (if missing)\\\\\\\\n  - Pre-existing IP protection\\\\\\\\n  - Default and remedies procedure\\\\\\\\n\\\\\\\\n## 5) Negotiation Proposal\\\\\\\\nFor each point to negotiate:\\\\\\\\n- **Current language**: [CONTRACT EXCERPT]\\\\\\\\n- **Proposed language**: [MY SUGGESTION]\\\\\\\\n- **Rationale for the other party**: negotiation argument (without revealing my actual concern)\\\\\\\\n- **BATNA**: what I do if the other party won't agree?\\\\\\\\n- **Minimum acceptable position**: what is my floor for protection?\\\\\\\\n\\\\\\\\n## 6) Final Recommendation\\\\\\\\n- Recommended negotiation posture\\\\\\\\n- Negotiation sequence (what to ask for first)\\\\\\\\n- If the other party won't budge on critical points: accept the risk, renegotiate price to compensate, or walk away?\\\\\\\\n- Other complementary protections (insurance, surety bond, etc.)\\\\\\\\n\\\\\\\\nLegal references: applicable contract law, consumer protection statutes, data protection regulations, and relevant case law.

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How to use this prompt

  1. 1Replace the key placeholders first: MY COMPANY DESCRIPTION AND SIZE, THEIR COMPANY DESCRIPTION AND RELATIVE SIZE, DESCRIPTION, AMOUNT.
  2. 2Replace any bracketed placeholders like [this] with your own context.
  3. 3Add extra background information when you want more tailored results.
  4. 4Combine multiple prompts in one conversation when you need a richer output.
  5. 5Save your best-performing prompts so they are easy to reuse later.

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