Contract Abstraction & Summarization means to have all the necessary details of a contract shown, leaving out the rest of the larger to detail part for second consideration.
In this age of fast-paced lives, it’s not everyone who has the luxury of too much time. So when things are done, time is of the essence. So it becomes even more requisite that we make that happen or strive to do exactly that.
When it comes to the law, nothing is ever simple or informal. Everything about legal is complex and usually woven through large jargons and clauses running pages after pages.
It is either that, or the organization has a number of contracts that when you need one at a time you can’t just right away pick and get to know the A- Z of It. Also, it doesn’t take someone too long to consider it and ask a contract, “So dear contract, what you are trying to say eventually?”
Precisely as an answer to these questions comes the concept of Contract Abstraction & Summarization. Contract Abstraction makes sure that every contract is accounted for with the right important details just enough to describe the contract without overdoing it with loads of words and pages.
The Contract Abstraction exists in a template form of tables with the exact attributes to give you the complete meaningful insight about the contract and hence for easy retrieval and understanding.
Contract Abstraction Template
An example of Contract Abstraction Template attributes include-
- Serial Number
- Meta Data Terms – Description of the contract
- File Name – Name of the file
- Agreement Title – Title of the agreement
- Purpose of Contract – Relevant Portion of Agreement
- Internal Party – Name of the client
- External Party – Name of the counterparty
- Effective Date – Effective date of the agreement
- Expiration Date – Expiration date of the agreement
- Initial Term -Time value
- Term Type -Term type by fixed or fixed with an option to renew
- Right to Terminate – Whether a party has the right to terminate the contract
- Notice Period – Number of days for providing the notice
- Payment Terms – In terms of net days
- Governing Laws – Provision that describes the applicable laws if any
This can be customized depending on the organization, however, fundamentally the relevancy of Contract Abstraction& Summarizationis the above attributes in which any contract extracts are sorted.
Contract Abstraction Key Goals
A good Contract Abstraction aims for the goals below
Risk Evaluation and Averting
Contract Abstraction gives us in layman terms the essentials details about the contract. This makes us evaluate and understand the contract effectively, mitigating any risks due to missing out on details.
It provides you with information at a glance for a quick review. It saves a lot of time trying to skim through the whole contract to know the purpose and other much-needed contract details.
Contract Abstraction provides you clearly with all the key dates neatly and legibly specified so that no deadlines are missed out or when a task/ service according to the contract needed to be carried out.
Straightforward and Uncomplicated
A template for Contract Abstraction with a tabular format and the adequate attribute descriptions columned and arranged makes it easy on the eyes to read and the brain to perceive things quicker.
The idea of a Contract Abstraction lies in the customization and hence gives the advantage of adding relevant data about the contract as per their requirements whenever the need arises for categorizing the contracts.
At AEREN LPO we have the full legal expertise on Contract Abstraction Services along with our Contract Management Services. To get more details on how great we do it visit www.aerenlpo.com for your free pilot project.