Chapter 5
  |  
10 min read

Draft: Creating New Contract Language

Draft is the AI Assistant's clause generator. Where Redline improves language that already exists, Draft creates language that doesn't. You tell the AI what you need, and it produces contract-ready text adapted to the style, terminology, and structure of your existing document. You review it, refine it if needed, and insert it where it belongs.


How to use Draft

  1. Open your contract in Word and launch the SimpleAI sidebar
  2. Select Draft from the action selector
  3. Type your instruction
  4. Hit send
  5. Review the proposed language and decide what to do with it

You don't need to highlight anything before drafting. Draft creates new language for you to insert into the document. If you want to improve or rewrite a clause that already exists, use Redline instead.

💡 Draft adapts to your document. It reads the agreement before generating output, which means it will pick up your defined terms, match your drafting style, and avoid introducing language that clashes with what's already there. The more context the document gives it, the better the output.


What Draft is built for

Use Draft when you want to:

  • Insert a clause that doesn't exist in the document
  • Generate alternative versions of a clause for negotiation
  • Create fallback language for positions you may need to concede
  • Add a new definition
  • Draft a schedule, exhibit, or annex
  • Produce a plain-English summary of the agreement or a section of it

📝 Draft creates. Redline improves. If the clause exists and needs work, including a full rewrite, use Redline. If the contract is completely silent on the topic, use Draft.


What to do with the output

Once the AI returns a draft, you have the same set of options as in Redline.

Insert. Adds the proposed language to your document at your cursor position.

Dismiss. Discards the suggestion without making any change.

Edit directly. Opens the proposed language so you can modify it manually before inserting. Use this when the AI's draft is mostly right but a phrase or defined term needs adjusting before it goes into the document.

Regenerate. Asks the AI to try again. You can retry with no changes for a fresh take, or retry with additional instructions to steer the next attempt.

     "Shorter and simpler." "More protective for the Customer." "Use 'Service Provider' instead of 'Supplier'." "Add a 12-month post-termination tail."

Find in document. Jumps to your cursor position in the Word document so you can see where the new language will land before inserting it.


Prompts that work well in practice

Drafting missing clauses

     "Draft a mutual confidentiality clause covering all business, technical, and commercial information."

     "Draft a data security clause with industry-standard obligations for a SaaS agreement."

     "Draft a termination for convenience clause with 30 days' notice and mutual rights."

     "Draft a dispute resolution clause using ICC arbitration with London as the seat."

     "Draft a governing law clause for English law."

Generating alternatives for negotiation

     "Give me three versions of a liability cap clause: strict, balanced, and supplier-friendly."

     "Draft a commercially reasonable fallback for this exclusivity clause if the counterparty won't accept a full carve-out."

     "Give me an alternative version of this indemnity that limits coverage to direct losses only."

Drafting definitions

     "Draft a definition of 'Confidential Information' that includes standard carve-outs for public domain information and independent development."

     "Draft a definition of 'Intellectual Property Rights' broad enough to cover software, documentation, and data."

Drafting schedules and supporting documents

     "Draft Schedule 1: Description of Services, based on the obligations described in clause 3."

     "Draft a data processing addendum covering the obligations in this agreement."


How to get better output from Draft

Be specific about the outcome you want. The more precisely you describe what the clause needs to achieve, the closer the first draft will be to what you need.

     "Draft a termination clause" produces a generic result.

     "Draft a termination for convenience clause with 30 days' notice, mutual rights for both parties, and survival of confidentiality and payment obligations" produces something you can actually use.

Specify the party perspective. If you don't say whose interests the clause should favor, the AI will default to something balanced. If you need it to be protective of a specific party, say so.

     "Draft this from the Customer's perspective." "Make this supplier-friendly." "Draft a mutual version."

Reference defined terms. If your contract uses specific defined terms, include them in your prompt. If you ask for a clause about "services" but your contract defines them as "Deliverables," the AI may generate inconsistent language.

Ask for options. When you're not sure what position to take, asking for multiple versions is faster than drafting and redrafting a single clause.

     "Give me three versions: one aggressive, one balanced, one as a fallback."

Don't overload a single prompt. If you need a clause that is mutual, caps liability at a specific amount, includes three specific carve-outs, and uses a particular defined term, break the request into steps. Draft the clause first, then use Redline to add the specific details.


What Draft won't do

Draft will not edit or replace existing language. If you want to improve a clause that already exists in the contract, including rewriting it from scratch, use Redline. Draft only creates new language for insertion.

Draft will also not analyze or explain. If you want to understand a gap before deciding how to fill it, use Ask first.


Draft as part of a workflow

Ask then Draft: identify gaps then fill them

Ask: "What protections are missing for the Customer in this agreement?"

Draft: "Draft a clause requiring the Supplier to maintain ISO 27001 certification and notify the Customer within 48 hours of any security incident."

Draft then Redline: create then refine

Once you've inserted a new clause, use Redline to tighten it.

Highlight the new clause, switch to Redline: "Tighten the language in this clause and align all defined terms with the rest of the agreement."

Compare then Draft: respond to counterparty changes

Run Compare to identify what the counterparty removed from your last draft.

Draft: "Draft a replacement limitation of liability clause that reinstates a mutual cap and carve-outs for fraud and wilful misconduct."


Next chapter → Compare: Tracking Changes Between Documents

Related

No items found.
// insert mobile menu // end mobile menu