In a landmark study, 20 top US corporate lawyers with decades of experience in corporate law and contract review were pitted against an AI. Their task was to spot issues in five Non-Disclosure Agreements (NDAs), which are a contractual basis for most business deals.
Lauri Donahue, Director of Legal Content at LawGeex As we blogged about back in the day, Many people make others sign non-disclosure agreements (NDAs) before they reveal their business ideas to them. They assume that an NDA will prevent the other party from using or revealing their ideas.
In the words of Harvard professors, Marco Iansiti and Karim R. Lakhani, the contract process now represents “a rush-hour gridlock trapping a Formula 1 race car”. The International Association for Contract & Commercial Management (IACCM) has found that 83% of businesses are dissatisfied with their organization’s contracting process. The time spent on reviewing paperwork sees hard-pressed in-house lawyers blamed … Continued
Michal Bell, LawGeex Head of Product, on the next generation of AI contract review helping reduce legal risk through consistency Legal knowledge tends to reside in lawyers’ heads, creating a dependency on lawyers sharing their know-how. AI is helping to distribute this knowledge simply, across an organization. Ensuring legal consistency across an organization is one of … Continued
No startup is an island. To succeed you’re going to have to form relationships with lots of other people and businesses: co-founders, investors, employees, vendors, customers, etc. To reduce risk and uncertainty, many of those relationships should be formalized with contracts. Here’s a short guide to the types of contracts your startup needs during the … Continued
In the previous installment, we talked about how Sweet Street Desserts and Better Bakery worked together to create a pretzel sandwich, sharing information under an NDA. Unfortunately, the parties had a falling-out. Sweet Street claimed Better Bakery had a secret scheme to steal the design and product development qualities of Sweet Street’s pretzel sandwich. Better Bakery denied … Continued
Entrepreneurs often ask their lawyers for “bullet-proof” non-disclosure agreements (NDAs) that will prevent their business associates from stealing their great ideas. The problem is, no such thing exists. We discussed in this previous blog how an NDA won’t necessarily protect your ideas. The best way to protect an idea is to jump through the legal … Continued
*Note: this is part one of a three part blog. Check back or follow us for the next two parts. “How can I make money from this great idea I have for a business/product/service/movie?” People often post questions like that on Q&A boards such as Quora. Unfortunately, there isn’t really much of a market for … Continued
Most NDAs are harmless. Despite all that scary-looking legalese, there’s nothing in there that’s likely to hurt you. But that doesn’t mean you shouldn’t read them carefully – because in rare cases an NDA will have a clause that can bite you in the butt. For example, you might see something like this: Receiving Party … Continued