Using the Clause Library

Your organization’s clause library contains pre-approved language for common contract provisions—liability caps, indemnification clauses, governing law, and more. Instead of copying from old contracts or asking colleagues for “our standard language,” you can find and insert the right clause in seconds.

Everyone on your team uses the same approved language. No more variations creeping in from different source documents.

Find what you need instantly. No digging through emails or shared drives looking for “that liability clause from last year’s deal.”

Every clause in the library has been reviewed and approved. You know it meets your organization’s standards.

When you insert a clause, Pactly tracks which clause was used. This creates documentation for compliance and governance.

1. Click Pactly in your Word ribbon

2. Click Clauses on the home screen

3. The clause bank opens in the panel

Clauses are organized with tags like:

• Indemnification

• Limitation of Liability

• Confidentiality

• Termination

• Governing Law

• Data Protection

Click a tag to see all clauses with that tag.

Combine tags for precision: Click multiple tags to narrow results. For example, select both “Indemnification” and “Mutual” to find mutual indemnification clauses only.

Use the search bar for specific language:

1. Type keywords in the search field

2. Results filter as you type

3. Search looks at clause titles and content

Example searches:

• “30 days notice” — finds clauses with 30-day notice periods

• “limitation of liability” — finds liability cap clauses

• “mutual” — finds clauses with mutual obligations

Before inserting, preview the full text:

1. Find a clause in the list

2. Click the clause title to expand it

3. You’ll see:

   • Full clause text

   • Tags associated with this clause

   • Default comment (if configured—a note that accompanies the clause)

Read the clause to make sure it fits your situation. Not all clauses with similar names work in all contexts.

1. Preview the clause to confirm it’s the right one

2. Position your cursor in Word where you want the clause

3. Click Insert

The clause text appears at your cursor position.

Some clauses have a default comment—an explanation or note intended for counterparties. When you insert these clauses:

1. The clause text is inserted in the document

2. A Word comment is automatically attached

Default comments are useful for explaining unusual provisions or preempting questions.

You can also insert clauses by asking the AI:

“Insert my standard governing law clause”

The AI searches your library and either inserts directly (if there’s one clear match) or shows options for you to choose.

“Show me my indemnification clauses”

The AI displays matching clauses so you can select the right one.

When inserting into an existing contract, you may want the clause to match the contract’s terminology. The AI can help.

Ask the AI to adapt the clause:

“Insert my liability cap clause and adapt it to match this contract’s defined terms”

The AI:

1. Retrieves your clause from the library

2. Reads the contract to identify defined terms (e.g., “Service Provider” vs “Vendor”)

3. Adapts the clause to use matching terminology

4. Shows you the adapted version for approval before inserting

This saves time versus manually adjusting party names and defined terms.

After insertion, you can edit the clause directly in Word. Common adjustments:

• Party names

• Specific values (amounts, dates, notice periods)

• Context-specific details

The inserted text is regular Word content—edit it like any other text.

The clause library integrates with playbook reviews:

Some playbook positions reference clauses from your library as fallback language:

1. Open a non-compliant position

2. Check the Fallbacks section

3. You may see options linked to library clauses

Clicking these inserts pre-approved language tailored to that issue.

During a review, you might need language that isn’t in the fallbacks. Use the clause library to find alternatives:

1. Note what type of clause you need

2. Switch to the Clauses tab

3. Search or browse for relevant options

4. Insert and adapt as needed

The clause library is managed in the Pactly web application. From Word, you can browse and insert—but not add or edit clauses.

If you’re an administrator:

1. Go to Knowledge → Clauses in the Pactly web app

2. Click Add Clause

3. Enter the title, text, and tags

4. Optionally add a default comment

5. Save

The clause becomes available in Word immediately.

If you need a clause that doesn’t exist:

1. Note the need during your work

2. Contact your legal team or Pactly administrator

3. They can add the clause to the library

Over time, your library grows to cover more scenarios—reducing the need for one-off drafting.

Less effective: “indemnity”

More effective: “mutual indemnification cap” or “indemnification IP infringement”

Always expand and read the clause before inserting. Make sure it actually fits your situation. A “Limitation of Liability” clause for software licensing might not work for a construction contract.

Your library might have several versions of similar clauses:

• Standard position

• Compromise position

• Minimum acceptable

Choose the one appropriate for your negotiation context.

Don’t manually adjust party names if the AI can do it. Ask for an adapted version—it’s faster and less error-prone.

If searches return nothing:

• Check spelling

• Try broader terms

• Your organization may not have clauses for this topic yet

If available clauses don’t match your needs:

• Try AI chat to adapt existing clauses

• Request a new clause be added to the library

• Draft custom language for this specific situation

If the Insert button doesn’t work:

• Make sure you have a document open

• Position your cursor where you want the clause

• Verify you have edit permissions on the document

• Try clicking in the document first, then inserting

• Using AI Chat — Get help finding and adapting clauses

• Running Playbook Reviews — Use clauses during reviews

• Installing Pactly Assist — Get started with the add-in