Our Process & Methodology
Contract Review Methodology
TermScout was built on one core belief: data integrity and objectivity are everything in this business.
Our contract experts answer detailed and objective questions about what a contract does and does not say — it’s our superpower. We take incredible pride in ensuring that data is accurate, because we know just how important accuracy is throughout the process.
For every contract we review, we answer pre-determined questions. An objective and consistent rating algorithm is used to determine the approximate proportions of the contract that favor each party.
Our ratings and reviews are completed with a combination of AI and experienced contract professionals using proprietary methodology, technology, and templates. Reviews are done with the exact same variables used in every contract type, enabling us to create category data sets and comparisons with integrity.
Ratings are assigned objectively based on a predetermined list of attributes. The scoring algorithm is determined by a panel of expert attorneys experienced in the relevant fields and generally aligns with the WorldCC Contracting Principles — an independent third-party set of principles for creating balanced commercial contracts. Other factors, such as market prevalence, and additional market indicators can be interpreted loosely to mean the following:
- Customer Favorable: TermScout has deemed that the contract is more than 60% beneficial to the customer.
- Balanced: TermScout has deemed that the contract is no less than 40% beneficial to either party.
- Vendor Favorable: TermScout has deemed that the contract is more than 60% beneficial to the vendor.
Because contracts frequently contain vague, ambiguous, or otherwise unclear statements, we assign clarity levels to every finding. These can be used to help users understand TermScout’s general level of certainty on findings.
Our reviews, ratings, and other components provide a way of getting a general feel for what is in a company’s contract, but we are not perfect. You may disagree with our weights, ratings, rating element assignments, or other methodology. Something may be good or bad for an average customer, but not for you. Ultimately, we designed this tool for the average customer, not to address customer-specific problems. Our system is meant to be used in tandem with your attorney, not instead of your attorney. We are not a law firm and are not a replacement for hiring an attorney.
We take quality extremely seriously. In the unlikely event that you find an error in any of our ratings or reviews, please let us know by clicking the “Report Issue” in the relevant portion of the web application or emailing email@example.com.
Scope of the Reviews and Ratings
To compile this review and rating, our team carefully reviewed the primary document, as well as secondary documents that are incorporated by reference in the primary document.