London, UK – Contract intelligence solution provider Uhura Solutions has announced the launch of its highly anticipated AI-based force majeure contract review solution. The service, which helps businesses understand the impact of the COVID-19 outbreak on contracts and agreements, is available for free in a community edition. The solution reviews contract terms and specifically looks for a force majeure clause that allows the party to back out of a deal without penalty, as well as other contract clauses to estimate litigation risk.
Due to COVID-19 some agreements are impossible to fulfil
“No business has been spared from the devastating effects of the COVID-19 pandemic,” said Djuro Stojanovic, co-founder of Uhura Solutions. “The spread of the virus is causing delays, reductions, or cancellations of service contracts. Businesses seek to understand their options and determine how a pandemic impacts their contracts and agreements. Keeping COVID-19 in mind, knowing which contracts have a force majeure clause in them will allow companies to assertively react to any business risks when they happen.”
Some agreements are impossible to fulfil and legal experts are being asked to review all contracts for force majeure clauses. Without AI, reviewing force majeure clauses will be a lengthy task, especially since many large corporations can have thousands of contracts, and even small enterprises can be dealing with hundreds.
Manual contact reviews are costly and tedious
“With AI, you can streamline the analysis and remove the burden of manual assessments. An AI-enabled contract review solution brings substantial time and cost savings. That is because the software can do in seconds what would take hours or days for a person to do manually.” continues Stojanovic.
Force majeure is a contract provision related to things that happen outside of a party’s control. It provides non-performance relief when such instances have transpired. If no clause addresses pandemic restrictions, a contract could potentially be at risk. Many companies can be affected by a lack of this clause, specifically, the ones who offer products and services.
The AI-enabled technology is flexible and powerful enough to seek out and analyze force majeure clauses in contracts
The solution answers the questions: is there a specific reference to an “epidemic” or “pandemic” as a force majeure event, are there phrases that relate to government measures, events beyond the reasonable control of the parties, or any special notice and termination provisions?
The machine learning models have been trained on large datasets so that any contract type is automatically recognized and processed for analysis. The user only has to upload the contract and the solution will automatically process it and report results.
The software can be deployed in the cloud or on-premises, allowing it to serve multiple customer types and requirements. It provides a consistent user experience and makes it easy to monitor key risk indicators and visualize which contracts could potentially be at risk. Built-in metrics and algorithms offer advanced data processing and statistics, which provide real-time risk assessment reporting.