Lesson 4 of 29
Read the clause findings
What you will be able to do
This lesson is for the legal team. You will open the Compliance Checks tab and read each clause finding: what was tested, the result, the law it refers to, and the recommended change.
Before you start
- The delivery services agreement has finished processing.
- You have checked the extracted details, as in lesson 3, because the checks are only as good as the details they use.
Steps
- 1
Open the Compliance Checks tab
Scroll down to the tabs and select Compliance Checks. The red number on the tab counts the checks that failed. Each check tests the contract for one thing that UAE law or good practice expects, such as a liability cap or a governing law clause.
- Select Compliance Checks3
- 2
Read a failed check
Start with a check marked Fail. The first line gives the name of the check, the result, and how confident the analysis is. The sentence under it explains what was found. Ref names the law the check comes from. The blue box is the recommendation: what to add or change.
- 3
Read the data protection check
Data protection, PDPL, is the check to watch on a contract that shares customer data, as this one does. A result of Warning would mean the clause is present but incomplete. Here it is marked Pass, because the contract says how the courier may use the customer data, how it keeps it secure, and how quickly it reports a loss.
- 4
Read a passed check
A check marked Pass needs no action, so it has no recommendation. It still names the law it was tested against, which is useful when someone asks how you know the clause is acceptable.
- 5
Understand Not applicable
Not applicable means the test does not suit this contract. A delivery agreement creates no intellectual property, so the ownership check is set aside. Which checks apply depends on the contract type.
- 6
Match the findings to the recommendations at the top
Scroll back up to Key Risk Factors and Recommendations. They repeat the failed checks in short form. Agree with the business which ones to raise with the counterparty before the contract is renewed.
- 7
Run the analysis again if the type was wrong
If the checks do not fit because the contract was read as the wrong type, scroll to the top, choose the correct type in the dropdown beside Re-analyze, and select Re-analyze. Here the type is right, so we choose Service Agreement only to show where the control is, and leave Re-analyze alone. A new analysis replaces the checks and the score.
- Select Service Agreement
- Choose Service Agreement
How to check it worked
you can name every check that failed or raised a warning on this contract, and for each one the recommendation that goes with it.
Common mistakes
- Reading Fail as illegal. A failed check means a clause that UAE practice expects is missing or weak. Whether to accept that is a decision for the legal team.
- Ignoring Not applicable. It means the test does not suit this kind of contract. If you think it does apply, the contract type is probably wrong: correct it and run the analysis again.
- Fixing the wording in the document but not uploading the new version. The checks describe the file on record, not the latest draft on your computer.
Check your understanding
1. What does the number on the Compliance Checks tab count?
- A.All the checks that were run
- B.The checks that failed
- C.The pages of the contract
- D.The days until expiry
Show answer
Answer: B. The checks that failed
The red number counts failed checks, so you can see at a glance whether there is anything to fix.
2. A check shows Warning rather than Fail. What does that mean?
- A.The clause is present but does not fully meet what the rule expects
- B.The check could not be run
- C.The contract has expired
- D.The clause is perfect
Show answer
Answer: A. The clause is present but does not fully meet what the rule expects
A warning is a partial result: something is there, but it is incomplete. The recommendation says what to add.