How to Redline a Contract With Less Stress and More Control

What Is Contract Redlining?

In plain terms, redlining means marking up a contract with suggested changes. These edits could be small, like fixing a date, or big, like changing payment terms or dropping a clause altogether.

Here’s what redlining usually includes:

• Strikethroughs to remove words or phrases
• Highlights or underlines to show what’s been added
• Comments or notes explaining why something was changed
• Tracked changes so everyone can see who did what

Redlining helps both sides of a deal come to terms without missing anything. It’s like a digital tug of war but with tracked edits instead of rope.

Contract Redlining: The Manual Way

Before fancy tools took over, redlining was a slow, hands-on process. Most people used Microsoft Word, saved new versions every time they made changes, and emailed files back and forth.

It worked, but barely. The risk of missing edits or reviewing the wrong version was high, especially when more than two people were involved.

Here’s what the manual redlining process usually looks like:

• Start with a draft. One side creates the original contract.
• Use “Track Changes” in Word. This lets everyone see edits like additions, deletions, and comments.
• Rename every new version. Files often look like “Agreement_V1_Redlined” or “Contract_v2_clean.”
• Send changes via email. And hope no one edits the wrong file.
• Compare edits side by side. Some folks use two monitors to check both versions.
• Manually accept or reject changes. This takes time and a sharp eye.

While this method is still used, it’s easy to get lost in versions and miss something important. Every edit is done by hand, which can be slow and tiring.

For short, simple contracts, it might do the job. But for bigger deals or fast turnarounds, manual redlining can quickly become a headache.

The Problem With Manual Redlining

We’ve already mentioned some problems with doing it all by hand, but let’s take a closer look at why manual redlining often causes more trouble than it’s worth.

• Version confusion. With names like “final_v3” or “updated_final_FINAL,” it’s tough to know which file is the latest.
• Lost edits. If someone forgets to turn on track changes or sends the wrong file, important updates can go ignored.
• Email overload. Contracts often go through several rounds of edits, and it’s easy to miss messages or mix up attachments.
• No clear audit trail. It’s hard to see who changed what or when unless you dig through tracked edits manually.
• Slower review times. Every step depends on someone finishing their part and sending it back, which causes delays.

Manual redlining isn’t built for speed or accuracy. It’s too easy to make mistakes, and even one missed edit could lead to confusion—or worse, a bad deal. That’s why more teams are shifting to smarter, tech-backed solutions. Speaking of…

How to Redline a Contract Using Tech

Tech has changed the way people review and edit contracts. You’re no longer stuck juggling Word files and endless email threads. Now, with the right tools, you can redline faster, stay organized, and cut down on back-and-forth.

Here’s how the process usually works:

1. Start With a Clean Draft

Before the contract redlining process even begins, upload or create a clean version of the contract in a platform that supports collaboration or structured review. This makes it easier to track every change from the start and avoids version mix-ups later.

2. Use Built-In Suggestion Modes

One of the best parts of redlining a contract with tech is how easy it is to track changes. Most modern tools have a “suggesting” or “track changes” feature built right in, and using them keeps everything neat and transparent.

When you turn on suggestion mode, every edit, whether it’s a word change, sentence tweak, or clause removal, is clearly marked.

That means no one’s left guessing, and you don’t have to explain each change in a separate message or email thread. Everyone reviewing the contract can see what’s been changed and why.

Here’s why this matters:

• Every change is visible and easy to review.
• The base text stays untouched until changes are accepted.
• Add comments or quick replies next to each change.
• No need to search for what’s different.

Instead of playing detective with redlines, you just scroll through, review, and decide what stays. It’s a smoother way to handle redlining contracts, especially when you’re using solid contract redlining software as part of your overall contract review process.

3. Share With Key Reviewers

Once your initial edits are in, it’s time to bring in the right people. That usually means legal reviewers, internal stakeholders, or sometimes outside counsel. With tech-based tools, you can invite them to the same document.

Everyone works from a single, shared version. That means changes, comments, and questions stay in one place, so nothing gets lost or repeated. Reviewers can weigh in when it fits their schedule, and you can move the process along without chasing anyone for input.

This step is key to keeping your contract negotiation process organized and on track. By keeping all feedback in one spot, you reduce delays, prevent confusion, and keep the back-and-forth focused on the deal.

4. Let AI Do the First Pass

This is where things start getting a lot easier. Instead of reading through the entire contract line by line right away, let AI handle the first sweep. Tools like Percipient can scan the document in seconds and flag common issues that usually take hours to catch.

For example, say your contract’s missing a confidentiality clause or includes a vague termination section. The AI will highlight those areas and suggest edits based on your company’s preferred language or past agreements. You don’t need to catch everything yourself; the software points you in the right direction.

Here’s what the AI typically looks for:

• Missing or weak clauses like indemnity, confidentiality, or governing law
• Risky terms that could hurt your company later
• Inconsistent language across similar contracts
• Outdated references (like laws or old company names)
• Unusual payment or renewal terms that don’t match your standards

You still need a human to review the suggestions, but AI gives you a strong head start. It helps cut down on busywork, keeps the review focused, and lowers the chances of something important slipping through your review.

5. Review AI Suggestions With Your Own Set of Eyes

AI can do a solid job of spotting missing clauses or risky wording, but it can’t read the room. That’s why human review remains a key part of the contract redline process.

Contract review software might highlight potential issues, but it takes people, especially those with legal experience, to decide what actually needs to change and why.

Once the AI does its first pass, legal professionals—often from in-house legal teams or trusted partners—step in to make sure the contract reflects both legal accuracy and business context.

For example, the AI might flag a liability clause as too broad. But if the deal is with a long-term partner or involves low risk, your legal team may choose to leave it alone. That decision isn’t something a machine can make.

Percipient takes this combined approach seriously. Their process starts with AI-powered contract redlining to catch key issues, but the real value comes from their expert legal team.

They review every suggested edit, compare it against your internal playbook, and explain the reasoning behind each change. This helps teams avoid guesswork, stay consistent, and move faster without cutting corners.

6. Final Round of Edits and Approval

Once all suggested changes have been reviewed, discussed, and either accepted or rejected, it’s time to make your final edits. At this stage, everyone involved should have a clear understanding of what stays and what goes.

With all edits tracked along the way, there’s no second-guessing or digging through emails to figure out who changed what.

After making those final updates, send the document back to the other party for review or sign-off. This step is where everything comes together before it turns into the final agreement.

A well-organized system makes this part much easier. If your entire contract workflow has been handled in one place with a clear version history and comments, you can finalize the agreement quickly and confidently.

No scrambling to find the latest version, no miscommunication, and no missing edits, just a clear path to a signed deal.

7. Save a Clean Version for Signature

After everyone’s agreed, accept all changes and save a final version without markup. This is the version that’ll be signed and stored.

Percipient Combines AI With Human Expertise for Reliable Redlining

Redlining doesn’t have to be slow, messy, or risky. Percipient makes the process smoother by pairing smart AI with real legal experts.

The AI handles the first pass—flagging issues, suggesting edits, and pulling relevant terms—while experienced professionals step in to review everything with context and care. This combo helps you catch problems early, stay consistent with your standards, and move faster without cutting corners.

You’re not just getting software; you’re getting a reliable review process that actually fits how your team works. From tailored onboarding to clear, actionable redlines, Percipient gives you the clarity you need to close contracts with confidence.

Want to spend less time buried in redlines and more time focusing on the bigger picture? Book a discovery call today!

FAQs About How to Redline a Contract

How do you redline an agreement?

To redline an agreement, open the document in a tool that supports tracked changes or suggestion mode. Make your edits directly in the document, including additions, deletions, and comments. This allows everyone reviewing the contract to see what’s changed and respond accordingly. Redlining is a key part of the contract lifecycle management process, helping both sides reach an agreement without missing important details.

How to properly redline a document?

Start with a clean version of the contract. Use “track changes” or “suggesting” mode to make edits visible and add comments to explain why changes were made. Stick to the formatting and structure of the original, and always keep a backup copy. If you’re working on multiple legal documents, staying consistent with terminology and tone helps avoid confusion later.

What’s the best way to terminate a contract?

Review the termination clause in the contract first. It usually outlines how and when you can end the agreement. Follow the steps listed, such as providing written notice within a certain timeframe. If the contract doesn’t include clear termination terms, consult your legal team before taking action.

What are the 4 rules of a contract?

The four basic elements of a valid contract are:

1. Offer – One party proposes terms.
2. Acceptance – The other party agrees to those terms.
3. Consideration – Something of value is exchanged (like money or services).
4. Mutual intent – Both parties agree to form a legal relationship.

These rules apply to most legal documents and are the foundation for enforceable agreements.