automating contract visualization +45+60+10+60+40+35+20+45 ... · of contracts visible ... visual...

Stefania PasseraHelena Haapio

Michael Curtotti

Making the meaning of contracts visible

IRIS 2014 Conference • 20th February 2014 • Salzburg

Automating contract visualization

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Need for informationto be accessible, transparent, clearand easy to understand

© 2014 Passera, Haapio, Curtotti

Contracts are no exception.

Information encoded explicitly is easier to grasp & share

Integrating pictures & text prevents cognitive overloadby distributing effort on 2 different processing systems

Visual structures and cues act as paralanguage,reducing the possibility of misinterpretation

Benefitsof visualization

>>

>


ChallengesManagers and lawyers don’t have suitable design sw

Wrong tools make the process slow & difficult

Fear of lacking the skills

Need to quickly modify the draft (many times!)

Text & visualizations should not contradict each other

>>>>>


Automation cansolve the issue

Avoids human errors in drafting

Saves time

Creates consistency among contracts

>>>

... and could make visualization easy, fast & dummy-proof!


Scenario of useOrganizations

Business To Business

Sales managers andpurchasing managers

(Proactive) in-houselegal counsels

Negotiations &drafting

we considered for the demos


Three demosContract term // Payment // Liquidated damages


Contract term 1


Contract term 2


Payments 1


Payments 2


Liquidateddamages 1


Liquidateddamages 2


Insights


- The user just needs to concentrate on answering “concrete” questions. In order to draft a contract, one does not need to master iron-clad legalese or specific design skills

- The job of lawyers and designers, in this case, is to be orchestrators: 1) deconstructing the contract so as to be able to ask the right questions from the user 2) constructing top-notch textual and visual“contract building blocks” that the code will automatically adapt to the needs of the user

- The contract is co-created by knowledge and activities of experts and final users

1/ We need to rethink‘contract design’


We need to discover ‘visual archetypes’

- Given a certain issue discussed in a contract, we need to find a visual formula that can flexibly illustrate all possible cases and variants

- If we cannot find such “visual archetype”, one big benefit arising from visualizating disappears: we cannot compare effectively alternative choices!

- Automation requires code. Code is more easily written and updated if the visual format of our output is constant, and we can follow a modular approach

2/


vs.

Comparison: we can immediately see which of these liquidated damagesprovisions is buyer-friendly and which is supplier-friendly...


A good visual archetype can be easily developed furtherand new informative aspects can be integrated

LD as only remedy

Capped / uncapped damages can be requested in addition to LD

1st week 2nd week 3rd week 4th week 5th week...

10 000 €

20 000 €

30 000 €

40 000 €

50 000 €

2%4%

6%8%

10% max

Liquidated damagesaccrual starts on

2014

€

Any amount!


10 000 €

20 000 €

30 000 €

40 000 €

50 000 €

2%4%

6%8%

10% max


(date)

€


10 000 €

20 000 €

30 000 €

40 000 €

50 000 €

2%4%

6%8%

10% max

7,5% max

€

85 000 €


(date)vs.Liquidated damagesDamages

Liquidated damagesDamages


- By generating and comparing different texts and visuals, the contract can be better understood and negotiated inside and outside organizations

- Managers can test whether their understanding of legalese contracts is correct: they can input information (as they understood it) in the tool, and see if the output looks like the one of the counterparty

- Visualization can help understandin in international business, when one of both parties are not native speakers

3/Viz & automation as an auditing tool


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thank [email protected]@[email protected]

questions?

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