Extracting Deadlines, Amounts and Obligations from Contracts into a List: A Handy Use of Generative AI

Hello, I'm Noriaki Asato, Representative Attorney at LegalAgent.

When extracting "by when," "how much" and "who does what" from a contract, you sometimes have to go back and forth between multiple clauses. In a SaaS subscription agreement or a service agreement, for example, the main terms are scattered throughout the document: the contract term and the deadline for refusing renewal in Article 2, the fee amount and payment date in Article 5, the acceptance inspection period for deliverables in Article 8, and so on. Overlooking a renewal date so that an unneeded contract is automatically renewed, or incurring late payment charges because a payment date was missed, are among the problems that day-to-day legal and back-office teams most want to avoid.

To notify the responsible departments of deadlines, you first extract the items to be managed from the contract. You then check that content, enter it in the register, and decide on the internal person in charge and the planned response.

One approach is to load a contract into ChatGPT, Claude, Gemini or similar tools and have them create a list of the required items. However, even with carefully crafted instructions, misreadings of numbers and conditions can remain. The basic division of roles is for AI to create the skeleton of the list and for a person to check it against the signed contract and any effective amendment agreements.

Extracting Scattered Key Items and Human Cross-Checking

When extracting information from a contract, have the AI state not only the content of each item but also the article number on which it is based and the original wording. If the supporting provision is shown, you can immediately check whether the extracted deadline or amount is correct by opening the corresponding part of the original. If the article number is missing, you have to reread the entire document to confirm where in the contract the extracted statement comes from.

Instruct the AI not to leave items it cannot find blank, but to show "Not stated." For example, if "Not stated" is output for a cap on damages, you can separately consider whether the contract simply does not set a cap in advance or whether something was missed in extraction. Even if "Not stated" appears, the possibility of an oversight remains. Check the entire contract, including schedules and amendment agreements, to determine whether there is in fact no provision.

Instruction Prompts Useful for Contract Management

First, here is a basic prompt that has the AI extract the main contract terms without omission and organize them in a table with the supporting provisions.

From the following contract, extract the items below and summarize them in a table. For each item, also state the article number on which it is based. For items you cannot find, write "Not stated," and do not fill in content that is not in the original text by guessing.

- Contract term and conditions for renewal
- Payment amount and payment deadline
- The main obligations of each party
- Conditions for termination for convenience or mid-term termination (including notice period)
- Provisions on damages (scope and whether there is a cap) [Paste the contract here (mask company names and personal names)]

Where the purpose is managing deadlines after signing or scheduling renewal notices, have the AI produce output in a format focused on the starting point of each deadline and the responsible party.

From the following contract, extract only matters relating to deadlines, renewal and notices, and organize them as a response schedule. Please output a table with the columns: Action / Deadline and starting point / Responsible party / Article number / Notes.
- State deadlines in a form that shows the starting point and the period, such as "by three months before the expiry date"
- Include as items whether there is automatic renewal and the procedure for stopping renewal
- Do not guess deadlines that cannot be read from the original text; write "To be confirmed" [Paste the contract here (mask company names and personal names)]

When using this schedule format, clearly distinguish between the party that bears rights and obligations under the contract and the person within the company who actually handles the task. If only the contract is provided, the AI may not know who the internal person in charge is. Do not have the AI guess the person in charge; register in the register what has been decided internally.

Blind Spots Commonly Encountered in Extraction Work

First, confusion of article numbers, dates and amounts. The AI may misread "Article 5" as "Article 15," or confuse "closing at the end of the month, payment at the end of the following month" with "payment at the end of the current month." In addition, if the body of the contract says "details are as set out in the schedule" but the schedules or appendices have not been loaded into the AI, the resulting list will be missing the key amounts and work specifications. It is important to confirm that the latest signed contract, individual memoranda and the full set of schedules are available before starting work.

Second, misunderstandings caused by filling in conditions. There are cases where a clause under which the parties merely agree that "renewal will be decided upon consultation before the term expires" is summarized by the AI, guessing from typical contract types, as "automatic renewal every year." Renewal by consultation and automatic renewal are very different in legal nature. Likewise, a 30-day advance notice of termination and a cure grace period are easily confused, so it is important to check the original wording itself.

Third, misunderstandings of starting points and the calculation of periods. If it says "notice by 30 days before expiry," first fix the expiry date and then check how the period is calculated. Do not substitute "30 days" for "one month" or "days" for "business days," and also check, in light of the contract and applicable law, the method of notice and whether the deadline requires the notice to have arrived. Rather than filling in dates that are not fixed by guessing, leave unclear points as "To be confirmed," and have a person do the final check in line with the governing law and the contract provisions. Also, from the standpoint of confidentiality, it is essential to operate in a secure environment that the company has approved for use.

• Cross-check the extracted deadlines, amounts and obligations against the clauses in the original
• Check the full set of contract documents, including schedules and amendment memoranda, and re-verify any "Not stated" entries
• Clearly distinguish between the obligor under the contract and the person in charge within the company
• Register deadlines after checking the starting point, the method of calculating periods and any requirement that notice arrive