About

Methodology & Data Handling

How ContractPanda works, what it can and can't do, and how we handle your data.

What ContractPanda can and cannot do

ContractPanda is an educational AI contract review tool. It helps you understand contract clauses and compare their wording with standard templates, but it does not provide legal advice or decide whether an agreement is suitable for you.

Is

  • ✓An educational tool that describes contract clauses.
  • ✓A comparison tool that shows how your contract compares to standard templates.
  • ✓A reference tool for common phrasings in standard templates.

Is not

  • ✕Legal advice.
  • ✕A recommendation to sign or not sign.
  • ✕A substitute for a qualified lawyer.
  • ✕A judgment on whether your contract terms are favorable.

How ContractPanda analyzes contracts

Analysis runs in two stages. First, your contract is sent to OpenAI with a structured prompt that identifies 15 specific clause types and describes each from an educational perspective.

Second, each clause is compared to a corpus of standard templates. Clauses using standard language are flagged as “Standard language”. Clauses that differ are flagged as “Less common language”. Common phrasings shown are drawn from the corpus — for educational reference only.

The resulting analysis gives you a structured, clause-by-clause explanation instead of a legal conclusion. It can help you understand the document and prepare informed questions for a qualified lawyer.

Standard Phrasing Check

Standard language

The clause uses phrasing that closely matches standard templates in our corpus.

Less common language

The clause differs from standard templates — it may be more or less favorable depending on context.

Not found

This clause type was not identified in your contract. Its absence may or may not be significant.

How ContractPanda handles contract data

ContractPanda processes contract text only to generate the requested analysis. The service does not require an account, and uploaded contract text is discarded after the response is returned.

  • ✓Contract text is sent to OpenAI's API and subject to their privacy policy.
  • ✓Your contract text is processed in memory and discarded after the response is returned. Nothing is stored server-side.
  • ✓Your data is never used to train AI models.
  • ✓No user accounts. No cross-user tracking. Aggregate usage counters only.

Limitations of AI contract review

  • !Optimized for freelance MSAs and Statements of Work in English only.
  • !Cannot read scanned PDFs — paste text manually if extraction fails.
  • !Contracts over 50,000 words must be split into sections.
  • !AI can miss nuances that a qualified attorney would catch.

AI contract analysis can miss context, unusual drafting, and legal consequences that depend on the parties or jurisdiction. Use ContractPanda as an educational starting point and consult a qualified attorney when you need legal advice.

Built by PandaDoc

ContractPanda is built by PandaDoc, the document automation platform trusted by 50,000+ teams.