Description:
BACKGROUND
Field of Invention
[001] Embodiments of the present invention generally relate to a contract generation and particularly to a system for adaptive legal contract generation and compliance verification.
Description of Related Art
[002] Legal contract creation and compliance assurance have remained crucial yet burdensome tasks in business and regulatory environments. The complexity of legal language, combined with frequently shifting statutes and jurisdictional demands, poses a substantial challenge to organizations. Traditional processes for drafting and reviewing contracts rely heavily on human expertise, which leads to delays, inconsistencies, and elevated costs. Additionally, legal professionals must interpret extensive documentation while ensuring alignment with current laws, which amplifies the risk of oversight or non-compliance.
[003] Conventionally, software tools attempted to streamline these processes through rule-based systems or document management platforms. While such tools automate certain tasks like clause extraction or risk flagging, they lack adaptability to nuanced legal contexts. The systems operate on fixed templates and require predefined rules, which limit their effectiveness in dynamic legal landscapes. As regulations evolve, the inability to update contract content or logic automatically diminishes the utility of these solutions.
[004] Artificial intelligence solutions have entered the legal domain in recent years, offering enhancements in document analysis and clause identification. However, the systems typically lack the domain-specific depth and contextual understanding required for comprehensive legal compliance. General-purpose models often misinterpret legal language or fail to detect jurisdictional subtleties, resulting in erroneous or incomplete outcomes. Furthermore, many AI-based tools do not offer explanations or real-time compliance verification, leaving organizations exposed to potential legal and regulatory risks.
[005] There is thus a need for an improved and advanced system for adaptive legal contract generation and compliance verification that can administer the aforementioned limitations in a more efficient manner.
SUMMARY
[006] Embodiments in accordance with the present invention provide a system for adaptive legal contract generation and compliance verification. The system comprising a data acquisition unit adapted to receive data from a computing device. The system further comprising a processing unit communicatively connected to the data acquisition unit. The processing unit is configured to receive the data from the data acquisition unit; process the received data, by executing Large Language Models (LLMs), for generation of a draft of a legal contract, The Large Language Models (LLMs) are adapted to verify and update the draft of the legal contract in real-time based on regulatory changes and compliances; generate an executable copy of the drafted legal contract by deploying intelligent computational techniques. The intelligent computational techniques are selected from a natural language processing (NLP), machine learning, legal knowledge graphs, web crawlers, or a combination thereof; and transmit an encrypted version of the executable copy of the legal contract to the computing device for execution by corresponding parties.
[007] Embodiments in accordance with the present invention further provide a method for adaptive legal contract generation and compliance verification. The method comprising steps of receiving the data from a computing device; process the received data, by executing Large Language Models (LLMs), for generation of a draft of a legal contract; generate an executable copy of the drafted legal contract by deploying intelligent computational techniques; and, transmitting an encrypted version of the executable copy of the legal contract to the computing device for execution by corresponding parties.
[008] Embodiments of the present invention may provide a number of advantages depending on their particular configuration. First, embodiments of the present application may provide a system for adaptive legal contract generation and compliance verification
[009] Next, embodiments of the present application may provide a system for legal contract generation that continuously monitors updates in laws, regulations, and jurisdictional requirements, ensuring that all generated contracts remain compliant without manual intervention.
[0010] Next, embodiments of the present application may provide a system for legal contract generation that utilizes fine-tuned Large Language Models to generate contracts based on the specific legal context, parties involved, and jurisdiction, offering higher accuracy and customization.
[0011] Next, embodiments of the present application may provide a system for legal contract generation that provides clear reasoning behind each clause or change, supporting traceability, legal justification, and better decision-making for users.
[0012] Next, embodiments of the present application may provide a system for legal contract generation that includes automated risk assessment features that proactively detect potential non-compliance or legal exposure before contract finalization, thereby significantly reducing liability.
[0013] Next, embodiments of the present application may provide a system for legal contract generation that safeguards sensitive legal data, ensuring privacy, integrity, and secure collaboration among authorized stakeholders.
[0014] These and other advantages will be apparent from the present application of the embodiments described herein.
[0015] The preceding is a simplified summary to provide an understanding of some embodiments of the present invention. This summary is neither an extensive nor exhaustive overview of the present invention and its various embodiments. The summary presents selected concepts of the embodiments of the present invention in a simplified form as an introduction to the more detailed description presented below. As will be appreciated, other embodiments of the present invention are possible utilizing, alone or in combination, one or more of the features set forth above or described in detail below.
BRIEF DESCRIPTION OF THE DRAWINGS
[0016] The above and still further features and advantages of embodiments of the present invention will become apparent upon consideration of the following detailed description of embodiments thereof, especially when taken in conjunction with the accompanying drawings, and wherein:
[0017] FIG. 1 illustrates a schematic block diagram of a system for adaptive legal contract generation and compliance verification, according to an embodiment of the present invention;
[0018] FIG. 2 illustrates a block diagram of a processing unit, according to an embodiment of the present invention; and
[0019] FIG. 3 depicts a flowchart of a method for adaptive legal contract generation and compliance verification, according to an embodiment of the present invention.
[0020] The headings used herein are for organizational purposes only and are not meant to be used to limit the scope of the description or the claims. As used throughout this application, the word "may" is used in a permissive sense (i.e., meaning having the potential to), rather than the mandatory sense (i.e., meaning must). Similarly, the words “include”, “including”, and “includes” mean including but not limited to. To facilitate understanding, like reference numerals have been used, where possible, to designate like elements common to the figures. Optional portions of the figures may be illustrated using dashed or dotted lines, unless the context of usage indicates otherwise.
DETAILED DESCRIPTION
[0021] The following description includes the preferred best mode of one embodiment of the present invention. It will be clear from this description of the invention that the invention is not limited to these illustrated embodiments but that the invention also includes a variety of modifications and embodiments thereto. Therefore, the present description should be seen as illustrative and not limiting. While the invention is susceptible to various modifications and alternative constructions, it should be understood, that there is no intention to limit the invention to the specific form disclosed, but, on the contrary, the invention is to cover all modifications, alternative constructions, and equivalents falling within the scope of the invention as defined in the claims.
[0022] In any embodiment described herein, the open-ended terms "comprising", "comprises”, and the like (which are synonymous with "including", "having” and "characterized by") may be replaced by the respective partially closed phrases "consisting essentially of", “consists essentially of", and the like or the respective closed phrases "consisting of", "consists of”, the like.
[0023] As used herein, the singular forms “a”, “an”, and “the” designate both the singular and the plural, unless expressly stated to designate the singular only.
[0024] FIG. 1 illustrates a schematic block diagram of system 100 for adaptive legal contract generation and compliance verification, according to an embodiment of the present invention. The system 100 may be adapted to generate a legal contract. Further, the system 100 may be adapted to verify the generated legal contract. The system 100 may further be adapted to update the generated legal contract in accordance with updating rules, laws, regulations, legislations, and so forth. The system 100 may be adapted to enable a digital signature on the generated legal contract by corresponding concerned parties. Furthermore, the system 100 may be adapted to explain a gist of the generated legal contract to the corresponding parties in a laymen language, according to an embodiment of the present invention.
[0025] The system 100 may be used in sectors such as, but not limited to, criminal courts, civil courts, property and real-estate transaction, vehicle leasing and renting, intellectual property rights, and so forth. Embodiments of the present invention are intended to include or otherwise cover any type sectors, including known, related art, and/or later developed technologies, for utilization of the system 100.
[0026] According to the embodiments of the present invention, the system 100 may incorporate non-limiting hardware components to enhance the processing speed and efficiency such as the system 100 may comprise a computing device 102, a data acquisition unit 104, a processing unit 106, Large Language Models (LLMs) 108, and intelligent computational techniques 110. In an embodiment of the present invention, the hardware components of the system 100 may be integrated with computer-executable instructions for overcoming the challenges and the limitations of the existing systems.
[0027] In an embodiment of the present invention, the computing device 102 may be adapted to upload the data to the system 100. The data uploaded by the computing device 102 may enable the system 100 to generate the legal contract. The data may be, but not limited to, names of parties, address of the parties, a duration of contract, a condition of contract, and so forth. Embodiments of the present invention are intended to include or otherwise cover any type of the data, including known, related art, and/or later developed technologies.
[0028] Further, the computing device 102 may be adapted to receive the generated legal contract for execution that may be, but not limited to, viewership, acceptance, and/or signing by the corresponding parties. The computing device 102 may be, but not limited to, a laptop, a mobile, and so forth. Embodiments of the present invention are intended to include or otherwise cover any type of the computing device 102, including known, related art, and/or later developed technologies.
[0029] In an embodiment of the present invention, the data acquisition unit 104 may be adapted to receive the data from the computing device 102.
[0030] In an embodiment of the present invention, the processing unit 106 may be in communication with the data acquisition unit 104. The processing unit 106 may further be configured to execute computer-executable instructions to generate an output relating to the system 100. According to embodiments of the present invention, the processing unit 106 may be, but not limited to, a Programmable Logic Control (PLC) unit, a microprocessor, a development board, and so forth. Embodiments of the present invention are intended to include or otherwise cover any type of the processing unit 106 including known, related art, and/or later developed technologies. In an embodiment of the present invention, the processing unit 106 may further be explained in conjunction with FIG. 2.
[0031] FIG. 2 illustrates a block diagram of the processing unit 106, according to an embodiment of the present invention. The processing unit 106 may comprise the computer-executable instructions in form of programming modules such as a data receiving module 200, a draft generation module 202, a data finalization module 204, and a data transmission module 206.
[0032] In an embodiment of the present invention, the data receiving module 200 may be configured to receive the data from the data acquisition unit 104. The data receiving module 200 may be configured to transmit the data to the draft generation module 202.
[0033] The draft generation module 202 may be activated upon receipt of the data from the data receiving module 200. In an embodiment of the present invention, the draft generation module 202 may be configured to execute the Large Language Models (LLMs) 108 for processing of the received data. Further, the draft generation module 202 may be configured to generation of a draft of the legal contract utilizing the processed data. Moreover, the draft generation module 202 may be configured to execute the Large Language Models (LLMs) 108 to verify and update the draft of the legal contract in real-time based on regulatory changes and compliances. Further, the Large Language Models (LLMs) 108 may be adapted to mend the draft of the legal contract by addition of compliances and jurisdictional customization.
[0034] In an exemplary embodiment, if a civil court of a jurisdiction may require a legal contract to be in a font face of ‘Times New Roman’ and a font size of ‘12’, then the draft generation module 202 may update the draft of the legal contract with the font face of ‘Times New Roman’ and the font size of ‘12’. The draft generation module 202 may be configured to transmit the draft of the legal contract to the data finalization module 204.
[0035] The data finalization module 204 may be activated upon receipt of the draft of the legal contract from the draft generation module 202. In an embodiment of the present invention, the data finalization module 204 may be configured to deploy the intelligent computational techniques 110 for generation of an executable copy of the drafted legal contract. The intelligent computational techniques 110 may be adapted to periodically check legal databases, case laws, regulatory changes and compliances, and so forth, for updating the executable copy of the legal contract with changed clauses based on new laws. The intelligent computational techniques 110 may be, but not limited to, a natural language processing (NLP), machine learning, legal knowledge graphs, web crawlers, and so forth. Embodiments of the present invention are intended to include or otherwise cover any type of the intelligent computational techniques 110, including known, related art, and/or later developed technologies.
[0036] In an embodiment of the present invention, the data finalization module 204 may be configured to conduct an automated risk assessment to detect possible compliance violations in the executable copy of the legal contract. The risk assessment may be adapted to detect loopholes and false pretenses in the executable copy of the legal contract. In an exemplary embodiment, if a patent application may be explaining a use case scenario of a camera, however, the patent application may not be clear about types and placement of the camera, then the risk assessment of the patent application may be ‘vulnerable’. Further, for rectifying the vulnerabilities, the data finalization module 204 may utilize the intelligent computational techniques 110 for scanning types and placement of the camera. Additionally, the data finalization module 204 may further update the patent application with findings related to the types and placement of the camera.
[0037] The data finalization module 204 may be configured to transmit the executable copy of the legal contract to the data transmission module 206.
[0038] The data transmission module 206 may be activated upon receipt of the executable copy of the legal contract from the data finalization module 204. The data transmission module 206 may be configured to transmit an encrypted version of the executable copy of the legal contract to the computing device 102 for execution by the corresponding parties. The data transmission module 206 may further be configured to provide knowledge snippets and informational digests to the corresponding parties for explaining legal terminologies used in the executable copy of the legal contract. Further, the data transmission module 206 may be configured to enable the corresponding parties to digitally sign the executable copy of the legal contract using the computing device 102.
[0039] FIG. 3 depicts a flowchart of a method 300 for adaptive legal contract generation and compliance verification, according to an embodiment of the present invention.
[0040] At step 302, the system 100 may receive the data from the computing device 102.
[0041] At step 304, the system 100 may process the received data using the Large Language Models (LLMs) 108.
[0042] At step 306, the system 100 may generate the draft of the legal contract.
[0043] At step 308, the system 100 may update the draft of the legal contract in real-time based on the regulatory changes and compliances.
[0044] At step 310, the system 100 may verify the draft of the legal contract against the regulatory changes and compliances. If the draft of the legal contract may be verified, then the method 300 may proceed to a step 312. Otherwise, the method 300 may proceed to a step 314.
[0045] At step 312, the system 100 may generate the executable copy of the drafted legal contract.
[0046] At step 314, the system 100 may update the draft of the legal contract in real-time based on the regulatory changes and compliances. Further, the method 300 may return to the step 304.
[0047] At step 316, the system 100 may transmit the encrypted version of the executable copy of the legal contract to the computing device 102 for execution by the corresponding parties.
[0048] While the invention has been described in connection with what is presently considered to be the most practical and various embodiments, it is to be understood that the invention is not to be limited to the disclosed embodiments, but on the contrary, is intended to cover various modifications and equivalent arrangements included within the scope of the appended claims.
[0049] This written description uses examples to disclose the invention, including the best mode, and also to enable any person skilled in the art to practice the invention, including making and using any devices or systems and performing any incorporated methods. The patentable scope of the invention is defined in the claims, and may include other examples that occur to those skilled in the art. Such other examples are intended to be within the scope of the claims if they have structural elements that do not differ from the literal language of the claims, or if they include equivalent structural elements within substantial differences from the literal languages of the claims. , Claims:CLAIMS
I/We Claim:
1. A system (100) for adaptive legal contract generation and compliance verification, the system (100) comprising:
a data acquisition unit (104) adapted to receive data from a computing device (102); and
a processing unit (106) communicatively connected to the data acquisition unit (104), characterized in that the processing unit (106) is configured to:
receive the data from the data acquisition unit (104);
process the received data, by executing Large Language Models (LLMs) (108), for generation of a draft of a legal contract, wherein the Large Language Models (LLMs) (108) are adapted to verify and update the draft of the legal contract in real-time based on regulatory changes and compliances;
generate an executable copy of the drafted legal contract by deploying intelligent computational techniques (110), wherein the intelligent computational techniques (110) are selected from a natural language processing (NLP), machine learning, legal knowledge graphs, web crawlers, or a combination thereof; and
transmit an encrypted version of the executable copy of the legal contract to the computing device (102) for execution by corresponding parties.
2. The system (100) as claimed in claim 1, wherein the data is selected from names of parties, address of the parties, a duration of the legal contract, a condition of the legal contract, or a combination thereof.
3. The system (100) as claimed in claim 1, wherein the Large Language Models (LLMs) (108) is adapted to mend the draft of the legal contract by addition of compliances and jurisdictional customization.
4. The system (100) as claimed in claim 1, wherein the intelligent computational techniques (110) are adapted to periodically check legal databases, case laws, the regulatory changes and compliances, or a combination thereof, for updating the executable copy of the legal contract with changed clauses based on new laws.
5. The system (100) as claimed in claim 1, wherein the processing unit (106) is configured to provide knowledge snippets and informational digests to the corresponding parties for explaining legal terminologies used in the executable copy of the legal contract.
6. The system (100) as claimed in claim 1, wherein the processing unit (106) is configured to conduct an automated risk assessment to detect possible compliance violations in the executable copy of the legal contract.
7. A method (300) for adaptive legal contract generation and compliance verification, the method (300) is characterized by steps of:
receiving the data from a computing device (102);
process the received data, by executing Large Language Models (LLMs) (108), for generation of a draft of a legal contract;
generate an executable copy of the drafted legal contract by deploying intelligent computational techniques (110); and,
transmitting an encrypted version of the executable copy of the legal contract to the computing device (102) for execution by corresponding parties.
8. The method (300) as claimed in claim 7, wherein the Large Language Models (LLMs) (108) are adapted to verify and update the draft of the legal contract in real-time based on regulatory changes and compliances.
9. The method (300) as claimed in claim 7, wherein the intelligent computational techniques (110) are selected from a natural language processing (NLP), machine learning, legal knowledge graphs, web crawlers, or a combination thereof.
10. The method (300) as claimed in claim 7, wherein the data is selected from names of parties, address of the parties, a duration of the legal contract, a condition of the legal contract, or a combination thereof.
Date: May 15, 2025
Place: Noida

Nainsi Rastogi
Patent Agent (IN/PA-2372)
Agent for the Applicant