LR-201a · Module 2

Clause Identification Patterns

4 min read

Contract drafters are creative. The same risk can hide behind different language structures, different section headings, and different levels of abstraction. An indemnification obligation does not always live in the section titled "Indemnification." It can appear as a warranty remedy, a limitation of liability carve-out, or a seemingly innocuous "responsibility" clause buried in the general terms. Clause identification is the discipline of finding risk wherever it lives — not just where the table of contents says it should be.

  1. Definitional Triggers Start with the definitions section. Every defined term that appears in a risk-bearing provision changes the scope of that provision. "Confidential Information" that includes "all information shared in any format" is a fundamentally different obligation than "Confidential Information" that includes "information specifically marked as confidential." The definition rewrites the provision without touching it.
  2. Cross-Reference Chains Follow every "as described in Section X" reference to its target. Cross-references create obligation chains where the risk of one provision depends on the content of another. A limitation of liability that "does not apply to obligations under Section 8" is only as protective as Section 8 is narrow. If Section 8 is broad, the limitation is decorative.
  3. Passive Voice Indicators Passive voice in contract language obscures responsibility. "Losses shall be borne" — by whom? "Data shall be retained" — by whom, and for how long? Passive voice is not always intentional obfuscation, but it always creates ambiguity. Flag every passive construction in a risk-bearing provision and demand an active voice rewrite.
  4. Survival Clauses Provisions that survive termination extend obligations beyond the contract period — sometimes indefinitely. Confidentiality obligations that survive for three years are different from confidentiality obligations that survive "in perpetuity." Check every survival clause for scope and duration. An obligation with no expiration is a permanent commitment.