What is a contract risk score?
A contract risk score is a number from 0 to 100 that summarises how risky a contract is for the person signing it. A low score means the contract is fair and balanced. A high score means it has serious problems you should address before signing.
How is it calculated?
ContractGuard AI analyses multiple dimensions of a contract and combines them into a single score.
Liability exposure
Does the contract cap your liability? Are there unlimited indemnity clauses? The higher the potential financial exposure, the more it raises the score.
Missing standard protections
A well-drafted contract includes governing law, dispute resolution, payment terms, and limitation of liability. Missing these raises the risk score because they leave you with no legal recourse.
Suspicious or one-sided clauses
Clauses that are highly favourable to one party — like the right to terminate without payment, perpetual IP assignment, or unlimited confidentiality — contribute significantly to a higher score.
What score is acceptable?
As a general guide: 0-33 is low risk and generally safe to sign with minor negotiation. 34-66 is medium risk and requires careful review of flagged clauses. 67-100 is high risk and should not be signed without negotiation or legal advice.
Check your contract risk score free
Upload any contract to ContractGuard AI and get your risk score in seconds — along with specific explanations of every flagged clause.