Commercial Contract-Type Categorization Task

A Commercial Contract-Type Categorization Task is a contract categorization task for contract agreements (commercial contract) into a commercial contract category.

• Context:
  • It can (typically) use Natural Language Processing (NLP) techniques to analyze the text of commercial contracts, identifying key features and categorizing them accordingly.
  • It can (often) support legal professionals by automating the sorting and organization of contracts into categories such as sales agreements, lease agreements, service agreements, and non-disclosure agreements.
  • It can range from being a Manual Contract Categorization Task to an Automated Contract Categorization Task utilizing advanced AI systems.
  • It can involve continuous training to keep up with new contract types and evolving legal standards.
  • It can be part of a larger Document Management System to enhance the efficiency of legal operations.
  • ...
• Example(s):
  • An LLM-based Commercial Contract Categorization System that sorts incoming contracts into categories like "Employment," "Purchase," "Lease," and "Partnership" based on their textual analysis.
  • A system used by law firms to classify and manage large volumes of contracts, improving retrieval times and accuracy.
  • ...
• Counter-Example(s):
  • A General Text Categorization System, which does not focus specifically on legal or commercial contracts.
  • A Legal Case Prediction System, which aims to predict the outcomes of legal cases rather than categorizing contracts.
• See: Commercial Contract Categorization System, Semantic Contract Annotation System, Contract Review System, Legal Document Classification Task, Legal Contract, Natural Language Processing, Contract Management System, AI in Legal Tech, Legal Technology.

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2023

• (UpCounsel, 2023) ⇒ https://www.upcounsel.com/commercial-contracts
  • QUOTE: Commercial contracts are documents that cover a combination of legal and commercial factors. The term encapsulates a large body of laws that regulate business transactions. The Uniform Commercial Code (UCC) is the primary authority that governs business transactions and contracts, but states also have regulations related to commercial contracts(...)

    (...)Commercial contracts can be verbal or written, but it's preferable to have a written contract as it's more difficult to enforce a verbal contract in court due to lack of documentation. Contracts can be formal or informal and relate to any kind of business activity such as wages, hiring, and safety. It's possible to execute a contract to establish terms regarding any business activity as long as the components listed below are in the contract:

    • Sales of goods, either retail or parts
    • Provision of services such as vendor services and employment
    • Use of intellectual property including patents, trademarks, copyrights, and trade secrets
    • The right of any given party to disclose confidential information or engage in competition
    • Lease or purchase of real property.

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