VerifAI is powered by your guidelines – the rules and principles you set that guide its analysis of contracts. Well-written guidelines ensure accurate results and help you quickly identify key contract terms and clauses.
What are Guidelines?
Guidelines are statements of recommended principles or standards that parties strive to follow in their contracts. They are similar to rules but offer more flexibility, as contract negotiations often require consideration of specific business nuances.
Think of guidelines as the "rules of the game" for your contracts as per your organization standards. VerifAI uses these guidelines to evaluate whether a contract meets your organization's expectations.
Examples of Guidelines:
- "The confidentiality obligation should be mutually applicable."
- "The contract duration should be a minimum of 5 years."
- "The service provider's liability should not exceed the value of the contract"
A guideline is not a question, since it does not have an answer.
Understanding "Met", "Not Met", and "N/A"
- "Met": A guideline is met when the contract clearly adheres to the principle outlined in the guideline.
- "Not Met": A guideline is not met when the contract fails to meet the principle outlined.
- "N/A": A guideline may be marked "N/A" when it is not applicable to the specific type of contract being reviewed.
Creating Effective Guidelines
1. Be Specific
Each guideline should address a single point or condition. Combining multiple ideas into a single guideline can make it unclear and less effective.
Less Effective:
"Both parties should have the right to terminate the contract without any reason (for convenience) with a 30-day notice, and also terminate the contract due to any insolvency or material breach by the other party."
More Effective:
- Guideline 1: "Both parties have the right to terminate the contract for convenience with a 30-day notice."
- Guideline 2: "Either party can terminate the contract in the event of insolvency or a material breach by the other side."
By separating guidelines, you ensure clear communication and better comprehension for all parties involved.
2. Provide Context
Guidelines should be clear and well-defined. Avoid ambiguous language and include sufficient context.
Less Effective:
"Exceptions for already known information"
More Effective:
"Confidential information that is already in the recipient's possession is excluded from the confidentiality obligation."
3. Clearly Refer to Parties
Explicitly mention the parties in question (e.g., "Service Provider," "Customer") within your guidelines to ensure accurate results.
Less Effective:
"We can provide similar services to others"
More Effective:
"The service provider can offer similar services to other clients"
Next Steps
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