Tutorial 02: Getting Started with Legal AI Assistants

Review this contract

CONTEXT: I am in-house counsel at a SaaS company. We are the vendor
negotiating with a Fortune 500 customer who sent back redlines to
our standard MSA.

ROLE: Act as a senior commercial contracts attorney with 15+ years
of enterprise software licensing experience.

INSTRUCTIONS:
1. Identify the 5 most significant changes they've proposed
2. For each change, assess risk level (HIGH/MEDIUM/LOW)
3. Recommend our response (ACCEPT/REJECT/COUNTER)
4. Draft counter-proposal language where appropriate

SPECIFICS:
- Governing law: Delaware
- Our standard position: 12-month liability cap equal to fees paid
- Customer is in healthcare (HIPAA considerations)

PARAMETERS:
- Format as a table for items 1-3
- Provide draft language in a separate section
- Be concise—this is for an internal strategy memo

CONTEXT: I represent a mid-size healthcare company evaluating a SaaS
vendor's standard agreement. We will be the CUSTOMER.

ROLE: Senior healthcare regulatory and commercial attorney.

TASK: Analyze this indemnification clause and provide:
1. Summary of what each party is agreeing to indemnify
2. Risk assessment (with specific concerns for healthcare)
3. Missing protections we should request
4. Suggested redline language for our top 3 concerns

CLAUSE TO ANALYZE:
"Customer shall indemnify, defend, and hold harmless Vendor and its
affiliates, officers, directors, employees, and agents from and against
any and all claims, damages, losses, liabilities, costs, and expenses
(including reasonable attorneys' fees) arising out of or relating to:
(a) Customer's use of the Services in violation of this Agreement;
(b) Customer Data or any content provided by Customer;
(c) Customer's violation of any applicable law or regulation.

Vendor shall indemnify Customer against third-party claims alleging
that the Services, as provided by Vendor, infringe any valid US patent
or copyright, provided Customer promptly notifies Vendor and gives
Vendor sole control of the defense."

CONSTRAINTS:
- California law applies
- HIPAA/healthcare data considerations are critical
- Focus on practical, negotiable positions

TASK: Create a legal research plan for analyzing non-compete enforceability.

FACTS:
- Employee: Software engineer in California
- Employer: Delaware corporation with offices in TX and CA
- Non-compete: 2-year restriction, 50-mile radius, signed in Texas
- Employee now wants to join competitor in California

PROVIDE:
1. Key legal issues to research (prioritized)
2. Relevant jurisdictions and potential conflicts
3. Types of sources needed (statutes, cases, secondary)
4. Specific search queries I should run in Westlaw/Lexis
5. Potential arguments for both sides
6. Red flags or complications I should watch for

FORMAT: Research checklist I can use to guide my work

I need to draft a demand letter for [situation]. Before drafting:
1. What are the key elements this letter must contain?
2. What tone is most appropriate?
3. What should I avoid saying (privilege/litigation concerns)?
4. Suggest an outline structure.

Based on our outline, draft the letter. Use these facts:
[Insert specific facts]

Tone: [Professional/firm/conciliatory]
Length: [Target length]
Key demands: [List specific demands]

Review this draft for:
1. Any statements that could waive privilege
2. Tone consistency
3. Unclear or ambiguous language
4. Missing elements
5. Overly aggressive language that might backfire

Then provide a revised version.

CONTEXT: I'm a litigation attorney representing plaintiff in a
personal injury case. We received a settlement offer.

TASK: Draft an email to my client explaining the offer and my
recommendation. The client is not legally sophisticated.

OFFER DETAILS:
- Defendant offers $175,000
- Must sign full release of all claims
- Confidentiality clause included
- Must be accepted within 14 days

CASE BACKGROUND:
- Client injured in car accident, rear-ended
- $45,000 in medical bills
- Lost 3 months of work ($22,500)
- Case value estimated at $150,000-$250,000 if we win at trial
- Trial would be 6-8 months away
- Defendant has good insurance coverage

MY RECOMMENDATION: Accept with counter on confidentiality

REQUIREMENTS:
- Plain English, no legal jargon
- Explain pros and cons objectively
- Be clear about next steps
- Professional but warm tone
- Under 400 words

PROJECT: Standard SaaS Agreement Reviews

CONTEXT:
- I review SaaS vendor agreements for [Company Name]
- We are always the CUSTOMER/licensee
- Industry: Healthcare (HIPAA applies)
- Risk tolerance: Moderate (we're a mid-size company)

STANDARD POSITIONS:
1. Liability cap: Prefer uncapped for data breach; minimum 2x annual fees
2. Indemnification: Must include vendor security breach indemnity
3. Data: We own all our data; vendor gets no rights to use it
4. Termination: Need termination for convenience with 30 days notice
5. SLAs: Require 99.9% uptime with service credits

REVIEW PROCESS:
When I share a contract:
1. First identify the contract type and our role
2. Summarize key commercial terms
3. Flag deviations from our standard positions using:
   - RED: Must negotiate (deal-breaker)
   - YELLOW: Should negotiate (significant risk)
   - GREEN: Acceptable (minor or standard)
4. Provide specific redline suggestions for RED and YELLOW items

TONE: Business-focused, not overly legalistic. I report to a non-lawyer.

Review this [contract type] from the perspective of [party].
Identify: (1) unusual terms, (2) missing protections, (3) risk
areas. For each issue, suggest specific redline language.

What are the key legal issues and relevant authority for
[situation] in [jurisdiction]? Provide a research roadmap
including specific search terms.

Draft a [document type] for [situation]. Tone: [formal/plain
English]. Include: [required elements]. Avoid: [prohibited content].

Explain [legal concept/situation] to a client who is not legally
trained. Use plain English, avoid jargon, and focus on practical
implications and next steps.