Legal contract writing, like all disciplines, is continuously evolving. Leveraging advancements in technology, this field is adapting to the dynamic needs of both corporate entities and individuals. A new paradigm, known as Contract Discovery (C-Discovery), is poised to reshape the legal landscape in ways unprecedented in centuries. This article explores the trajectory of legal contract writing and its implications for the broader legal ecosystem.

The Traditional Landscape of Contract Writing

Before the advent of the Internet, contract drafting was largely confined to legal professionals and institutions. Contracts were securely stored in physical locations, not merely for confidentiality but also as a means of monopolizing their creation and use. Aside from the limited exposure provided by legal training programs, access to legal templates was restricted. This exclusivity ensured that contract drafting remained an opaque and inaccessible process for many clients and paralegals.

The emergence of the Internet disrupted this status quo, democratizing access to legal documents. Legal institutions began adopting software tools that empowered clients to draft preliminary contracts independently, later refining them with professional input. Simultaneously, virtual legal firms proliferated, offering a plethora of templates to subscribers, significantly reducing the barriers to contract creation.

TheRightContract’s Contribution to C-Discovery

In early 2019, TheRightContract® embarked on a groundbreaking initiative to create a legal dictionary informed by a corpus of 836 legal contracts spanning various genres. These contracts were acquired through purchases and contributions from clients and categorized into seven temporal groups: pre-1990, 1990–1994, 1995–1999, 2000–2004, 2005–2009, 2010–2014, and 2015–2019. The primary aim was to analyze linguistic and structural evolution in contracts over the past 30 to 40 years.

Using a concordancer, the research team analyzed 2,953,112 words from the corpus, categorizing them by frequency and alphabetical order. This analysis involved extracting and mapping terms and phrases across various genres. An unexpected by-product of this study was the observation of increasing uniformity in contractual terms and clauses over time. Contracts written post-2015 exhibited significantly less variation, with sections and clauses becoming more standardized, particularly in critical areas such as representations and warranties, liability, and insurance.

Drivers of Standardization

This unintentional unification and standardization of contractual language can be attributed to several factors:

• Globalization of Legal Practices: Cross-border transactions necessitate common legal frameworks.
• Internet Accessibility: The widespread availability of legal templates and resources online.
• Automation: The use of software to draft and manage contracts efficiently.

This natural evolution, driven by technological advancements, benefits clients by reducing costs and enhancing accessibility. While deeply rooted legal institutions may perceive this trend as a challenge to their traditional dominance, it aligns with the broader goal of democratizing legal services.

The Path Toward Global Standardization

Just as international standards govern industries such as electronics, automotive, and aviation, TheRightContract® anticipates that legal organizations will eventually advocate for the global standardization of contracts. Such an initiative, potentially starting as early as 2030, could bring significant benefits:

• Cost Reduction: Standardized contracts lower drafting costs for clients.
• Enhanced Clarity: Unified terms minimize disputes and ensure predictable performance.
• Improved Compliance: Standardized agreements align with regulatory frameworks, reducing legal ambiguities.

While this development is promising, it also raises concerns about potential monopolization by elite institutions that may control or influence the standardization process. These entities could leverage their insights to anticipate and mitigate risks, thereby consolidating their power and financial gains.

A Globalized Future

Standardizing legal contracts aligns with the broader globalization movement, which has unified banking systems, technology protocols, and industrial regulations. The entities that control the protocols for contract standardization will wield significant influence over the legal and economic landscape.