Review Third-Party Contracts with a Playbook

When counterparties provide their paper (contracts drafted by them), you need to review these documents against your organization’s standards. Pactly’s playbook review feature uses AI to identify potential issues and deviations from your preferred positions.

Use this feature when:

• A vendor sends their standard agreement
• A customer provides their procurement contract
• You receive a counterparty’s paper that needs review
• You want to quickly identify negotiation points

Step 1: Navigate to the contract containing the third-party document.

Step 2: Click on Review with Playbook from the actions menu.

Step 3: Select the appropriate playbook for this contract type.

Choose a playbook that matches:

• The contract type (NDA, MSA, SaaS Agreement, etc.)
• The business context (vendor, customer, partner)
• Any specific requirements for this deal

Step 4: Initiate the review. Pactly’s AI will analyze the document against your playbook positions.

Step 5: Review the findings. The AI will identify:

• Clauses that don’t meet your standards
• Missing provisions
• Unusual or non-standard language
• Potential risks

Step 6: For each finding, decide whether to:

• Accept as-is (if the deviation is acceptable)
• Negotiate (request changes from the counterparty)
• Escalate (get guidance from senior stakeholders)

Each finding includes:

• Position: Your organization’s standard
• Actual: What the contract says
• Gap: The specific deviation
• Recommendation: Suggested action

1. Choose the right playbook: Different contract types need different playbooks
2. Review AI findings critically: AI assists but doesn’t replace human judgment
3. Consider context: Some deviations may be acceptable for the specific deal
4. Document decisions: Record why you accepted or rejected each finding
5. Update playbooks: If you frequently accept a deviation, consider updating your playbook

Once you’ve reviewed all findings:

1. Compile your negotiation points
2. Draft a response to the counterparty
3. Track the negotiation in the contract timeline
4. Re-review after receiving revised documents

• Writing effective playbook positions
• How to review contracts with the Word plugin