👉 Try the demo: https://github.com/LM-Kit/lm-kit-net-samples/tree/main/console_net/contract_key_terms_extractor

AI Contract Key Terms Extractor for C# .NET Applications

🎯 Purpose of the Demo

AI Contract Key Terms Extractor demonstrates how to use LM-Kit.NET to extract key clauses and terms from contracts entirely on local hardware. Feed it any legal agreement and get back structured JSON with parties, dates, financials, termination conditions, IP rights, confidentiality obligations, liability caps, and risk flags.

The sample shows how to:

Use TextExtraction to extract structured data from legal documents.
Define extraction schemas with TextExtractionElement for contract-specific fields.
Extract both factual data (dates, amounts) and interpretive analysis (risk flags, clause summaries).
Parse text content with SetContent(string) or load documents with Attachment.

Why a Local Contract Analyzer with LM-Kit.NET?

Confidential contracts stay private: analyze sensitive legal documents without cloud exposure.
One API call: a single Parse() call extracts all key terms. No agents, no chaining.
Risk detection: AI automatically flags unusual or potentially risky clauses.
Works offline: no API keys, no internet connection required.

👥 Who Should Use This Demo

Legal Teams: quickly review contracts and identify key terms without manual reading.
Procurement Departments: extract and compare terms across vendor agreements.
Startup Founders: understand key clauses before signing partnerships or vendor contracts.
Contract Management Developers: integrate local AI-powered contract analysis into CLM systems.
Compliance Officers: flag risky clauses and ensure policy adherence.

🚀 What Problem It Solves

Contract review time: extract key terms in seconds instead of hours of manual reading.
Data privacy: analyze confidential contracts without uploading to cloud AI services.
Risk visibility: automatically surface non-compete, exclusivity, auto-renewal, and penalty clauses.
Consistency: extract the same structured fields from every contract for easy comparison.

💻 Demo Application Overview

Console app that:

Lets you choose from multiple models optimized for text extraction.
Downloads models if needed, with live progress updates.
Creates a TextExtraction instance with a contract-specific schema.
Enters an interactive loop where you can:
- Type sample to analyze a built-in Master Services Agreement.
- Enter a file path to analyze your own contract (.txt, .pdf, .docx).
- View the extracted key terms with color-coded output.
- View the full JSON output for integration.
Loops until you type q.

Key Features

Comprehensive Extraction: Contract type, parties, dates, value, payment, termination, IP, confidentiality, liability, governing law.
Risk Flags: AI identifies unusual or risky clauses (non-compete, exclusivity, unlimited liability, auto-renewal).
Party Identification: Each party extracted with name, role, and address.
Built-In Sample: Realistic Master Services Agreement for instant demo.
JSON Output: Machine-readable structured data for contract management systems.
Zero Configuration: No API keys, no cloud accounts, no external dependencies.

🏗️ Architecture

  ┌─────────────────────────────────────────────────┐
  │         Contract (text, PDF, DOCX)              │
  └───────────────────┬─────────────────────────────┘
                      │
                      ▼
  ┌──────────────────────────────────────────────────┐
  │              TextExtraction                      │
  │                                                  │
  │   Schema:                                        │
  │   ├── Contract Type (String)                     │
  │   ├── Contract Title (String)                    │
  │   ├── Parties (Array)                            │
  │   │   └── Name, Role, Address                    │
  │   ├── Effective Date (Date)                      │
  │   ├── Expiration Date (Date)                     │
  │   ├── Contract Value (String)                    │
  │   ├── Payment Terms (String)                     │
  │   ├── Termination Clause (String)                │
  │   ├── Confidentiality (String)                   │
  │   ├── Liability Limitation (String)              │
  │   ├── Intellectual Property (String)             │
  │   ├── Governing Law (String)                     │
  │   ├── Key Obligations (String)                   │
  │   ├── Renewal Terms (String)                     │
  │   └── Risk Flags (String)                        │
  │                                                  │
  └───────────────────┬──────────────────────────────┘
                      │
                      ▼
  ┌──────────────────────────────────────────────────┐
  │           Key Contract Terms                     │
  │           (formatted display + JSON)             │
  └──────────────────────────────────────────────────┘

Extraction Schema

Field	Type	Description
Contract Type	String	NDA, Service Agreement, Employment, Lease, etc.
Contract Title	String	Official document title
Parties	Array	Name, role, and address of each party
Effective Date	Date	When the contract takes effect
Expiration Date	Date	End date or "Perpetual"
Contract Value	String	Total monetary value or fee
Payment Terms	String	Payment schedule and conditions
Termination Clause	String	Termination conditions and notice period
Confidentiality	String	Non-disclosure obligations summary
Liability Limitation	String	Liability cap or damages limitation
Intellectual Property	String	IP ownership and licensing provisions
Governing Law	String	Jurisdiction for disputes
Key Obligations	String	Main deliverables and obligations
Renewal Terms	String	Auto-renewal conditions
Risk Flags	String	Unusual or risky clauses identified

Code Highlights

using LMKit.Extraction;
using LMKit.Model;

LM model = LM.LoadFromModelID("qwen3:8b");

var textExtraction = new TextExtraction(model);
textExtraction.Elements = new List<TextExtractionElement>
{
    new("Contract Type", ElementType.String, "Type of contract."),
    new("Parties",
        new List<TextExtractionElement>
        {
            new("Name", ElementType.String, "Legal name of the party."),
            new("Role", ElementType.String, "Role in the contract."),
            new("Address", ElementType.String, "Registered address.")
        },
        isArray: true,
        "Parties involved in the contract."
    ),
    new("Effective Date", ElementType.Date, "When the contract becomes effective."),
    new("Risk Flags", ElementType.String, "Unusual or risky clauses."),
    // ... more elements
};

textExtraction.SetContent(contractText);
var result = textExtraction.Parse();

Console.WriteLine(result.Json);

⚙️ Getting Started

Prerequisites

.NET 8.0 or later
Sufficient VRAM for the selected model (6-18 GB depending on model choice)

Download

git clone https://github.com/LM-Kit/lm-kit-net-samples
cd lm-kit-net-samples/console_net/contract_key_terms_extractor

Run

dotnet build
dotnet run

Then:

Select a model from the menu, or paste a custom model URI.
Wait for the model to download (first run) and load.
Type sample to try the built-in contract, or enter a file path.
View the extracted key terms and JSON output.
Type q to exit.

🔧 Troubleshooting

Incomplete clause extraction
- Try a larger model (14B+) for better accuracy on complex legal language.
- Ensure the full contract text is provided, not just excerpts.
Risk flags not detected
- Larger models are better at identifying subtle risk patterns.
- Check that the contract contains the relevant clauses.
PDF parsing issues
- Ensure the PDF contains selectable text (not a scanned image).
- For scanned contracts, use OCR preprocessing (see invoice_data_extraction demo).

🚀 Extend the Demo

Contract comparison: extract terms from multiple contracts and generate a comparison table.
Compliance checking: validate extracted terms against company policy rules.
Renewal tracking: build a dashboard of upcoming contract expirations and renewals.
Multi-language contracts: test with international agreements using multilingual models.
Database integration: pipe JSON output into a contract lifecycle management (CLM) system.

📚 Additional Resources

How-To: Extract Structured Data: General guide to defining schemas and extracting structured data from text and documents.
Glossary: Structured Data Extraction: Explains schema-driven extraction concepts used for contract analysis.
Glossary: Extraction: Covers the broader extraction capabilities in LM-Kit.NET.
Invoice Data Extraction Demo: Similar schema-driven extraction demo applied to invoice documents.

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