Beyond Accuracy and Surface Fluency: Risk-Sensitive Evaluation of LLMs for Legal Clause Generation
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Abstract (arXiv)
Large language models (LLMs) are increasingly used to draft contractual language, yet conventional accuracy or preference-based evaluations are poorly matched to legal drafting. A clause may be fluent and stylistically polished while still omitting an essential carve-out, allocating risk in an unenforceable way, assuming an inapplicable jurisdiction, or exposing a party to regulatory liability. This paper presents a empirical study design and framework for evaluating LLM-generated contract clauses. The study evaluates four models - Claude Haiku 4.5, Gemini 2.5 Flash Lite, GPT 5.4 Nano, and Qwen 3.5 Flash, across 22 contract clause categories and 34 legally-motivated failure modes. We combine two evaluation frameworks: CLAUSE, which classifies prompts by legal function and failure target, and LENS-CRAFT, which scores outputs across nine legal-quality dimensions. Instead of averaging dimension scores, the study applies a Max Severity Principle so that a single legally decisive defect remains visible. The paper provides the evaluation protocol, taxonomy, analysis plan, and a results structure for reporting empirical findings. We argue that legal AI evaluation should move beyond aggregate accuracy toward clause-specific, failure-mode-driven, and risk-sensitive assessment.
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References · 16
- 2021LexGLUE: A Benchmark Dataset for Legal Language Understanding in Englishcited by 302
- 2021CUAD: An Expert-Annotated NLP Dataset for Legal Contract Reviewcited by 232
- 2023"Kelly is a Warm Person, Joseph is a Role Model": Gender Biases in LLM-Generated Reference Letterscited by 196
- 2021ContractNLI: A Dataset for Document-level Natural Language Inference for Contractscited by 145
- 2024Large Legal Fictions: Profiling Legal Hallucinations in Large Language Modelscited by 144
- 2024LegalBench-RAG: A Benchmark for Retrieval-Augmented Generation in the Legal Domaincited by 113
- 2021Trustworthy AI: A Computational Perspectivecited by 93
- 2023Interpretable Long-Form Legal Question Answering with Retrieval-Augmented Large Language Modelscited by 35
- 2023Assessing Hidden Risks of LLMs: An Empirical Study on Robustness, Consistency, and Credibilitycited by 28
- 2025An Empirical Study of LLM-as-a-Judge: How Design Choices Impact Evaluation Reliabilitycited by 17
- 2023Walking a Tightrope -- Evaluating Large Language Models in High-Risk Domainscited by 15
- 2023BLT: Can Large Language Models Handle Basic Legal Text?cited by 10
4 more
- 2026FlexGuard: Continuous Risk Scoring for Strictness-Adaptive LLM Content Moderationcited by 7
- 2024Gaps or Hallucinations? Gazing into Machine-Generated Legal Analysis for Fine-grained Text Evaluationscited by 4
- 2022Conversion of Legal Agreements into Smart Legal Contracts using NLPcited by 3
- 2024The Human Factor in Detecting Errors of Large Language Models: A Systematic Literature Review and Future Research Directionscited by 3
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