LR-101 · Module 2

The [RISK]/[REDLINED]/[RECOMMEND]/[CLEARED] System

3 min read

When I review a contract, I need a shared language that everyone on the team can read and act on — without needing a law degree to interpret my notes. The annotation system is four tags. Four. That is all it takes to turn a 40-page contract from a wall of opaque legal text into an actionable document with clear decision points.

  1. [RISK] — Flagged Provision This provision creates exposure. I explain the risk in plain English and ask for a business decision. I do not redline it because the risk may be acceptable depending on the deal value, the client relationship, or the strategic context. The business decides. I inform the decision.
  2. [REDLINED] — Changed Provision This provision was unacceptable as written. I have provided replacement language and documented the reason for the change. The new language is ready to send back. If they push back on the redline, we discuss — but the original language does not survive.
  3. [RECOMMEND] — Optional Improvement This provision is not blocking, but it could be better. Worth raising if the negotiation dynamic allows it. If the other side pushes back, I would not hold the deal for this. It is an improvement, not a requirement.
  4. [CLEARED] — Reviewed and Approved I have read this provision. It is acceptable. No action required. This tag matters because it tells the team that silence means "reviewed and approved," not "I have not gotten to that section yet."

Do This

  • Tag every substantive provision — even the ones that are fine. [CLEARED] is information.
  • Include plain-English explanations with every [RISK] and [REDLINED] tag
  • Let the business decide on [RISK] items — your job is to inform, not to block
  • Use [RECOMMEND] to distinguish nice-to-have improvements from deal-critical changes

Avoid This

  • Leave provisions untagged — silence is ambiguous, and ambiguity is risk
  • Write annotations in legal jargon — the audience is the team, not a judge
  • Treat every [RISK] as a deal-breaker — some risks are worth accepting with eyes open
  • Skip the [CLEARED] tags — they prove you read the whole document