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Fix the drafting defects that become disputes
Hunts the ambiguities that actually get litigated: terms used but never defined, obligation verbs nobody can sort, and/or, unbounded standards like "promptly," and cross-references pointing nowhere.
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3
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1. Defined terms
- "Products" used but never defined. Appears in §§ 2.1, 4.3, 7.2, and Exhibit A. Article 1 defines "Goods" and never "Products." Favors the buyer: on any dispute about scope, an undefined term gets read against the drafter, and you drafted.
> Replacement (Art. 1, new § 1.14): "'Products' means the Goods identified in Exhibit A, as amended by written change order signed by both parties."
- "Affiliate" defined twice at different scopes. § 1.2 uses fifty percent voting control; Exhibit C § 2 uses "common control." The indemnity in § 9 runs to Affiliates. Favors the buyer, whose group is larger under the Exhibit C reading.
> Replacement (Exhibit C § 2): delete the definition and insert: "Capitalized terms used in this Exhibit have the meanings given in the Agreement."
- "Confidential Information" defined but never used. § 1.7 defines it; the confidentiality obligations in § 8 refer to "proprietary information." Neutral today, litigable later.
> Replacement (§ 8.1): replace "proprietary information" with "Confidential Information" throughout § 8.
2. Obligation verbs
- § 4.2 cannot be sorted. *"Supplier shall use best efforts to deliver on the dates set forth in Exhibit A, and Buyer's obligation to pay shall be conditioned on timely delivery."* Reading one: late delivery breaches a duty and Buyer still owes payment less damages. Reading two: timeliness is a condition and Buyer owes nothing at all for a late shipment. The second reading is catastrophic for you and the sentence supports it.
> Replacement: "Supplier must deliver on the dates set forth in Exhibit A. Buyer's payment obligation is not conditioned on timely delivery; Buyer's sole remedy for late delivery is the service credit in Section 4.4."
- § 6.1 "agrees to cooperate." Creates no measurable duty. Favors whichever party is asked to cooperate and does not want to.
> Replacement: "Each party must respond to the other's written request for records under this Section within ten business days."
3. Connectors
- § 9.1 "any and all claims, damages and/or losses arising out of or relating to." The and/or means a tribunal can read the indemnity as reaching losses without claims. Favors the buyer.
> Replacement: "any claim, damage, or loss arising out of or relating to."
- § 11.3 "Notwithstanding anything to the contrary herein." Names nothing. Sitting in the limitation of liability, it can be read to override the § 9 indemnity carve-out.
> Replacement: "Notwithstanding Sections 4.4 and 7.2, but subject to Section 9.3,"
4. Unbounded standards
| Section | Standard | Fix |
|---|---|---|
| § 5.2 | "promptly notify" | "notify within five business days after becoming aware" |
| § 7.1 | "material breach" | Define it: "a breach that (a) remains uncured thirty days after written notice, or (b) involves nonpayment exceeding $50,000" |
| § 10.4 | "commercially reasonable efforts" | [CONFIRM - governing law] Do not rely on {{jurisdiction}} supplying content. Replace with the two obligations you actually want: "maintain at least ninety days of component inventory and notify Buyer within five business days of any supplier disruption" |
5. Structural integrity
- § 7.2 cross-references "Section 6.5." There is no § 6.5; Article 6 ends at 6.3. The cure period the termination clause depends on has no target. This is the most dangerous defect in the document.
- Exhibit D is referenced at § 12.1 and is not attached.
- Numbering repeats: two sections are labeled 11.2.
- Signature block names "Northline Components, Inc." The preamble names "Northline Components LLC."
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Assumptions I made. That Exhibit D exists somewhere and was omitted from what you pasted rather than never drafted [verify: if it was never drafted, § 12.1's escrow obligation has no content at all]. That "Products" and "Goods" were meant to be the same thing [verify: if Products was meant to be broader, the fix narrows your own obligation in a way you may not want]. That § 7.2's reference to 6.5 was meant to point at 6.3, the cure provision [verify: it could equally have pointed at a section that was deleted].
Where this is weakest. Three flags may be wrong. The "Affiliate" mismatch could be deliberate, since a broader Affiliate definition inside an exhibit about data sharing is sometimes negotiated on purpose. The § 10.4 efforts standard may have been the compromise that closed the deal, in which case replacing it with two hard obligations reopens a settled point. And the § 9.1 "and/or" fix narrows an indemnity that you, as supplier, are giving, so the buyer will read the change as substantive even though it is drafting hygiene.
What only you can decide. Which ambiguities to fix at all. The § 7.2 broken cross-reference and the two "11.2" sections are pure defects and should be fixed regardless. But § 4.2 is different: as drafted, the condition reading is terrible for you, and raising it tells the buyer a defense exists that they have not noticed. Fixing it quietly in a clean-up redline is one option; leaving it and arguing the duty reading later is another, and the second is only sane if you are confident about how {{jurisdiction}} treats conditions of payment. Second call that is yours: whether to run the shall-to-must conversion from {{firm_preferences}}. It touches every operative sentence and guarantees a full redline cycle on a document you wanted signed this week.
What would make this materially better. Ranked: (1) Exhibit D, or confirmation it does not exist, which decides whether § 12.1 is a defect or a hole. (2) {{related_documents}}, because "Products" and "Affiliate" almost certainly have controlling definitions in the MSA and the fix should point there rather than create new ones. (3) Whether you or the buyer drafted § 4.2, which decides who the ambiguity is construed against.
Why this prompt is built the way it is
## Framework
1. **Defined-term audit.** Used but never defined, defined but never used, used in two senses, defined at a scope wider or narrower than the deal.
2. **Obligation verbs.** For every shall, will, must, and agrees to: who owes what to whom, and whether the sentence is a duty, a condition, a representation, or a right. Anything that cannot be sorted is the ambiguity that gets litigated.
3. **Connectors.** And/or, "including" without "without limitation," a notwithstanding that names nothing, a proviso with an unclear antecedent. Give both readings.
4. **Unbounded standards.** Promptly, material, reasonable efforts, satisfactory, from time to time. Propose a number or an objective test rather than asserting what the governing law supplies.
5. **Structural integrity.** Cross-references resolved, exhibits attached and referenced, numbering continuous, signature blocks matching the preamble, terms aligned with the related documents.
6. **Replacement text for everything flagged.** No exceptions.