---
title: "Draft a first-pass commercial contract from the term sheet"
url: "https://ailawframework.com/practice/commercial-and-corporate-advisory/draft-a-first-pass-commercial-contract-from-the-term-sheet"
type: "task"
site: "AI Law Framework"
id: "A1-T1-R1"
practice_area: "Commercial & Corporate Advisory (contracts, company law, governance)"
tier: "yellow"
lawyer_review: "required"
last_reviewed: "2026-10-22"
---

# Draft a first-pass commercial contract from the term sheet

> Produce a first-draft supply, services, licence or distribution agreement from the agreed term sheet and the firm's precedent, with a list of missing standard clauses.

Canonical page: https://ailawframework.com/practice/commercial-and-corporate-advisory/draft-a-first-pass-commercial-contract-from-the-term-sheet  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Commercial & Corporate Advisory (contracts, company law, governance)](https://ailawframework.com/practice/commercial-and-corporate-advisory.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | Produce a first-draft supply, services, licence or distribution agreement from the agreed term sheet and the firm's precedent, with a list of missing standard clauses. |
| What the lawyer must review | Read every clause against the deal, the client's risk position and the governing law Check that governing law, liability, IP and termination work before sending |
| Written for / versions | 1 jurisdiction versions below |

## Checking plan

**Lawyer review required**

The responsible lawyer reviews the work against the instructions, sources and intended use.

- What the AI does: Potential support includes preparing preliminary structure or wording and identifying points for review. Confirm the tool’s capability and permitted scope.
- What the lawyer does: Set the scope, verify the evidence, resolve exceptions and approve the final output for its intended use.
- Who reviews: Responsible lawyer with competence in the matter
- Basis: Suggested checking approach based on the task guidance. Complete the assessment for the actual tool, information and jurisdiction.
- Why: The plan reflects the described work and review requirements. Policy colours are not used to determine permission or checking.

## Checks the lawyer makes

1. Trace every relied-on figure to its source, confirm dates and assumptions, and independently recalculate totals or derived amounts.
2. Calculate operative dates independently from the current rule and actual triggering event. Check exceptions and record the verified deadline.
3. Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
4. Review the original source set for relevant material absent from the output, including contrary evidence, qualifications and unresolved gaps.
5. Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
6. Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
7. Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.

## Notes

- Confirm the required checking with the responsible lawyer before work starts. The checking approach does not establish permission to use AI.

## Forms and precedents for this task

| Form or precedent | Kind | AI level | Summary |
| --- | --- | --- | --- |
| [Mutual nondisclosure agreement (United States commercial discussions)](https://ailawframework.com/precedents/commercial-and-corporate-advisory/us-mutual-nda.md) | Agreement | Yellow | Mutual nondisclosure agreement for two businesses exploring a US commercial deal. It limits use and disclosure, tracks the Defend Trade Secrets Act definition of a trade secret, and restricts AI… |
| [Short-form services agreement (United States commercial)](https://ailawframework.com/precedents/commercial-and-corporate-advisory/us-short-form-services-agreement.md) | Agreement | Yellow | Short services agreement for a US commercial engagement: scope, fees, a liability cap, customer materials, and electronic signing under the ESIGN Act.… |

Signed-in accounts can read the full text of each one.

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [United States](https://ailawframework.com/practice/commercial-and-corporate-advisory/draft-a-first-pass-commercial-contract-from-the-term-sheet/united-states.md) | Yellow |

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*