---
title: "Penalty Clause Identification"
section: "Agent store — Procurement — Contract Management"
canonical_url: "https://leverge.ai/agents/procurement/contract-management/penalty-clause-identification"
category: "Procurement"
process: "Contract Management"
trigger: "Run on demand"
publisher: "Ailoitte Technologies Private Limited"
---

# Penalty Clause Identification

Find the clauses in a procurement contract that can cost you money — penalties, liquidated damages, minimum commitments, termination charges, indemnities — and quote each one so a reviewer can go straight to it.

## At a glance

- Business function: Procurement
- Process: Contract Management
- Runs: run on demand
- Run cost: 8 credits
- Uses a knowledge base: no

## What it needs

- **The contract or draft** (file upload) — Read in sections so nothing is skimmed past on page 40.

## How it works

1. Reading the contract
2. Splitting into sections
3. Scanning section {{loop.index}} of {{loop.total}}
4. Ranking what it could cost
5. Writing the reviewer's note

## What it returns

- **Cost exposure** (score)
- **Where to look first** (written summary)
- **Clauses that can cost money** (clause table)
- **One-way provisions** (flagged exceptions)

---

Source: https://leverge.ai/agents/procurement/contract-management/penalty-clause-identification — Leverge