Legal AI glossary

25 definitions for legal AI buyers, contract reviewers, and legal ops teams. Editorial standards.

AI contract review
Software that analyzes contract clauses for risk, often producing scores, issue summaries, and suggested redlines.
Contract redlining
The process of marking proposed edits in a contract draft during negotiation.
Contract risk scoring
A structured method for ranking clause risk by severity and negotiation exposure.
Redline-ready language
Suggested replacement text that can be inserted into a draft after attorney review.
Contract playbook
A set of preferred positions, fallbacks, and escalation rules for contract review.
CLM
Contract Lifecycle Management — software for intake, approval, storage, and obligation tracking.
Limitation of liability
A clause capping or excluding categories of damages between parties.
Indemnification
A promise to compensate the other party for specified third-party claims or losses.
Mutual NDA
A confidentiality agreement binding both parties to protect shared information.
Residual knowledge
Information retained in unaided memory after exposure, often carved out of NDAs.
MSA
Master Services Agreement governing an ongoing commercial relationship.
SaaS agreement
Contract for cloud software subscription including data, SLA, and liability terms.
Termination for convenience
A party's right to end a contract without cause, subject to notice and fees.
Legal ops
The function managing legal department processes, technology, and outside counsel.
Word add-in
A software extension that runs inside Microsoft Word.
E-E-A-T
Experience, Expertise, Authoritativeness, Trust — quality signals for published content.
Common law
Legal system based on case precedent; primary framework for US commercial contracts.
Injunctive relief
Court order requiring or prohibiting specific conduct, often sought for confidentiality breaches.
Super-cap
A liability limit higher than the standard cap for specified high-risk claims.
Triage
Prioritizing items by urgency or risk for efficient review.
First-pass review
Initial attorney or paralegal review before senior or partner approval.
Fallback position
A secondary negotiating position when preferred language is rejected.
Data processing agreement
Contract governing how a vendor processes personal or confidential data.
SOC 2
Audit framework for service organization security controls.
No-training policy
A vendor commitment not to use customer data to train AI models.

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