An intelligent contract review system handles the automatic parsing of non-standardized clauses through a combination of natural language processing (NLP), machine learning, and rule-based algorithms. Here's how it works:
Natural Language Processing (NLP): The system uses NLP techniques to analyze the text of the contract, identifying key terms, phrases, and structures. It can understand context, extract entities (e.g., parties, dates, amounts), and classify clauses based on their intent.
Machine Learning Models: Trained on large datasets of legal documents, the system learns patterns in standard and non-standard clauses. It can recognize deviations from typical contract language and flag them for further review.
Rule-Based Parsing: Predefined rules help the system interpret common legal terminology and structures. For non-standard clauses, the system may apply heuristic methods or refer to external legal knowledge bases to infer meaning.
Contextual Analysis: The system evaluates the clause within the broader context of the contract, ensuring that its interpretation aligns with the overall agreement.
Example:
A contract contains a non-standard clause like: "The parties agree to a force majeure event that includes any unforeseen circumstance beyond reasonable control, including but not limited to acts of God, natural disasters, and government actions."
The system would:
For cloud-based contract management and review, Tencent Cloud's Legal AI solutions can automate clause extraction, risk assessment, and compliance checks, improving efficiency in legal document processing.