Traditional contract review takes 1-2 hours per document. AI red-flag tools scan in seconds and flag risky clauses only—enabling fast triage of high-volume contracts.
Common Red Flags
| Red Flag | Risk |
|---|---|
| Unlimited liability | No cap on exposure |
| Auto-renewal (long term) | Locked into multi-year terms |
| One-sided indemnification | You defend them; not vice versa |
| Broad IP assignment | Lose rights to your IP |
| No termination for convenience | Trapped until breach |
Severity Ratings
| Rating | Action |
|---|---|
| 🔴 HIGH | Must address before signing |
| 🟡 MEDIUM | Attempt negotiation |
| 🟢 LOW | Ask if opportunity exists |
Gap Analysis
- No liability cap = unlimited exposure
- No termination clause = locked indefinitely
- No cure period = immediate termination risk
FAQ
Should AI suggest revisions?
Flag plus general guidance. "One-sided indemnification. Consider mutual." Don't dictate specific language.
How does AI contract review work?
River's Red Flag Tool scans contracts in seconds, flagging risks with severity ratings.