Top 3 Most Common AI Contract Customizations: ChatGPT vs. DocLegal.ai (We Tested Both)
As a legal professional, I use ChatGPT every day for brainstorming. But using it to generate binding contracts is a different story.
So, I ran an experiment.
First, I asked ChatGPT: "What are the top 3 most common contract customizations requested by users?"
It gave me this list:
- Payment Terms
- Termination Clause
- Limitation of Liability Clause
Then, I put both AIs to the test. I asked ChatGPT to write these clauses for a standard Consulting Agreement, and compared the results against a $1 DocLegal.ai template.
Here is exactly what happened.
The Verdict : General AI vs. Legal AI
If you are asking 'Is ChatGPT safe for contracts?', here is the summary of our findings:
| Contract Feature |
ChatGPT (General AI) |
DocLegal.ai (Legal AI) |
| Payment Terms |
High Risk. Vague interest clauses; no protection for collection costs. |
Secure. Includes specific interest rates, expense reimbursement, and debt recovery costs. |
| 2. Termination |
Basic. Lets you quit, but doesn't protect your IP or payment upon exit. |
Comprehensive. Covers insolvency, "for cause" firing, and immediate IP return. |
| 3. Limitation of Liability |
Aggressive 3-month cap that clients will reject. Limits liability for data breaches |
Uses market-standard caps that get signed faster while protecting secrets. |
Test 1 - Payment Terms
We asked for a monthly payment clause for a $100/hr consultant
| ChatGPT Result |
DocLegal.ai Result |
|
"Invoices shall be issued monthly. Payment is due within 14 days. Late payments may incur interest of 1.5%."
|
“1. Monthly Payment Clause for Consultant at $100/hr**In consideration of the services provided by the Consultant, Jane Smith, under this Agreement, the Client, XYZ Tech Solutions Ltd., agrees to compensate the Consultant at a rate of $100 per hour. The Consultant shall submit detailed monthly invoices to the Client, specifying the hours worked and a description of the services rendered during the billing period. The Client agrees to remit payment for the invoiced amount within thirty (30) days of receipt of the invoice.The Consultant must maintain accurate and detailed records of the hours worked and services performed, which shall be made available to the Client upon request. Any expenses incurred by the Consultant exceeding $500 must receive prior written approval from the Client to qualify for reimbursement. Payment shall be made via [specify payment method, e.g., bank transfer, check, etc.], and any disputes regarding invoiced amounts must be raised by the Client within ten (10) business days of receipt of the invoice.Failure to remit payment within the specified timeframe may result in the accrual of interest at a rate of [specify interest rate, if applicable] per month on the outstanding balance, beginning from the due date until payment is received in full.”
|
Analysis for the Payment Terms:
| ChatGPT |
DocLegal.ai |
|
"May incur" is a weak language. A client can argue they don't have to pay interest because it wasn't mandatory.
Lacks details on invoicing structure, doesn’t include provisions for handling of expenses, commissions, caps.
|
Includes an Expense Reimbursement Policy.
Strict Dispute Resolution — enforces a 10-day objection window; if the client doesn't complain in 10 days, they must pay.
Mandates Timesheet Compliance — legally requires "detailed records" and timesheets, preventing payment arguments before they happen.
|
Key takeaway of Test 1:
ChatGPT gives you a starting point for the payment provisions, however, you will need to provide further details to ensure it protects your interest as a client or consultant.
Test 2 - Termination Clause
We asked for a mutual termination clause between the client and consultant
| ChatGPT Result |
DocLegal.ai Result |
Either party may terminate this Agreement with [e.g., 14] days' written notice. Upon termination:
Consultant shall stop work immediately.
Client shall pay Consultant for all services performed up to the termination date.
|
The Client, XYZ Tech Solutions Ltd., and the Consultant, Jane Smith, may mutually agree to terminate this Agreement at any time by providing written notice to the other party.
Upon mutual termination, the Consultant shall cease all work immediately, vacate the work site, and return all materials, documents, and property belonging to the Client.
The Client shall compensate the Consultant for all work completed up to the date of termination, as agreed upon by both parties.
Both parties agree to release each other from any further obligations under this Agreement, except for those provisions that expressly survive termination, including but not limited to confidentiality, intellectual property, and indemnification obligations.
|
Analysis for Termination Clause:
| Key Issue |
ChatGPT (General AI) |
DocLegal (Legal AI) |
| Company Property |
Silent on returning assets. The clause ends the work but does not legally require the consultant to return your documents, data, or equipment upon departure.
|
Mandates return of materials. Explicitly requires the consultant to vacate the premises and return all materials, documents, and property immediately.
|
| Post-Contract Protection |
Protection ends with the contract. Once the agreement is terminated, the specific rules regarding confidentiality and IP often expire because there is no "Survival Clause."
|
Continues protection indefinitely. Includes a "Survival Clause," ensuring that confidentiality, IP rights, and indemnification remain legally binding even after the work stops.
|
| Finality of the Deal |
Leaves loose ends. It addresses final payment but does not prevent future claims. The consultant could potentially return later with further demands.
|
Ensures a clean break. Includes a "release of obligations," meaning both parties agree that the relationship is fully concluded, preventing future disputes or lingering liabilities.
|
Key Takeaway for Test 2:
ChatGPTmisses critical post-termination safeguards like the return of company property and ongoing confidentiality rules leaving you to manually close these loopholes to protect your business assets.
Test 3: Limitation of Liability Clause
We asked both platforms to protect the Consultant from lawsuits.
| ChatGPT Result |
DocLegal.ai Result |
“Limitation of Liability:
1. Limitation of Damages.
To the fullest extent permitted by applicable law, the Consultant shall not be liable to the Client for any indirect, incidental, consequential, special, exemplary, or punitive damages, including but not limited to lost profits, loss of business, loss of data, or business interruption, arising out of or related to this Agreement, even if advised of the possibility of such damages.
2. Cap on Liability.
The Consultant’s total aggregate liability for any and all claims, losses, or damages arising out of or relating to this Agreement—whether in contract, tort, negligence, strict liability, or otherwise—shall be limited to the total fees actually paid by the Client to the Consultant under this Agreement during the three (3) months preceding the event giving rise to the claim.
3. Reliance on Client Information.
The Consultant shall not be liable for any damages, losses, or claims resulting from the Consultant’s reliance on information, data, materials, or instructions provided by the Client or any third party on the Client’s behalf.
4. No Liability for Third-Party Actions.
The Consultant shall have no liability for any acts, omissions, or performance failures of third parties, including subcontractors, vendors, or service providers not under the Consultant’s direct control.
5. Exceptions.
Nothing in this Agreement shall limit the Consultant’s liability for fraud, willful misconduct, or any liability that cannot legally be limited or excluded under applicable law.
|
1A. Limitation of Liability Clause**
The Consultant, Jane Smith, shall not be liable to the Client, XYZ Tech Solutions Ltd., or any third party for any indirect, incidental, consequential, special, or punitive damages, including but not limited to loss of profits, revenue, data, or business opportunities, arising out of or related to this Service Agreement, even if the Consultant has been advised of the possibility of such damages.
The Consultant’s total aggregate liability for any claims, damages, or losses arising out of or related to this Agreement, whether in contract, tort (including negligence), or otherwise, shall not exceed the total compensation paid to the Consultant under this Agreement.
This limitation of liability shall not apply to damages resulting from the Consultant’s gross negligence, willful misconduct, or breach of confidentiality obligations as outlined in this Agreement.
|
Analysis for Liability Clause
| Feature |
ChatGPT (General AI) |
DocLegal (Legal AI) |
| Negotiation Risk |
Less Likely to close the deal. The "3-month cap" is so aggressive that clients will likely redline the contract or walk away.
|
Likely to close the deal. Uses "Market Standard" terms (Total Fee cap) that clients are used to signing without argument.
|
| Data Security |
Unrealistic. Caps your liability if you leak their data. Clients rarely agree to this risk.
|
Professional. Accepts responsibility for Breach of Confidentiality, which is essential for winning trust with high-value clients.
|
| The Strategy |
Protect at all costs. Good for a fight, bad for a partnership.
|
Commercial Balance. Protects you from bankruptcy but keeps the contract fair enough to sign immediately.
|
Key Takeaway for Liability Clause
ChatGPT is acting like a robotic lawyer that tries to win every single point. Doclegal.ai ensure the contract gets signed as the clause language is the industry standard balance.It shows you understand professional norms, making you look like a serious partner, not a risky freelancer.
Conclusion: Is "General AI" Worth the Risk?
I use ChatGPT every day to outline ideas. But for legal documents, "free" comes with a hidden cost: Risk.
- ChatGPT: Fast to generate text, but misses critical protections like debt recovery costs. You save $1 but risk losing the client or your IP.
- DocLegal.ai: Takes 2 minutes. You select the template, the AI pulls your profile, and the legal logic is balanced to get your contract signed today.
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