# Example: explain contract## InputThree clauses from a lease pasted by a tenant in a country she names; context: tenant, what matters most is being able to leave within a year.Clause 4: "The tenancy runs for 12 months and renews automatically for successive 12-month periods unless either party gives written notice no later than 3 months before the end of the current period."Clause 7: "The Tenant pays a deposit of two months' rent. The Landlord may deduct from the deposit any costs arising from the tenancy at the Landlord's discretion. The deposit is returned within a reasonable time after the keys are handed back."Clause 12: "Late payment incurs a charge of 2% of the monthly rent per day of delay."## Result (shortened)Understanding, not legal advice. Rules differ by country.In one paragraph: a 12-month lease that renews by itself for another 12 months unless notice is given three months before the end; a two-month deposit with open-ended deductions; a daily late fee.Money| What | Amount | When | Condition | Clause ||---|---|---|---|---|| Deposit | 2 months' rent | at start | returned "within a reasonable time", deductions at the landlord's discretion | 7 || Late fee | 2% of monthly rent per day | on late rent | no cap stated | 12 |Worked example for clause 12: rent 1,000, ten days late: 2% × 1,000 × 10 = 200.Dates: notice to end on the first anniversary must be given 3 months before it, in writing (clause 4). Added to deadlines.md as "notice deadline, 3 months before the end of each term".Risky clauses| Severity | Clause | Quote | Why it matters for me | What to ask or change ||---|---|---|---|---|| High | 4 | "renews automatically for successive 12-month periods unless … 3 months before" | you wanted to be able to leave within a year; a missed date means another full year | renewal month to month after the first year, or a 1-month notice || High | 7 | "at the Landlord's discretion", "within a reasonable time" | no list of allowed deductions and no return date: the usual way deposits get lost | a list of deductions, a return date (for example 14 days), a joint inspection with photos || Medium | 12 | "2% of the monthly rent per day of delay" | no cap; a two-week delay costs 28% of the rent | a grace period and a cap; check with a consumer service whether the country limits such fees |What is missing: who repairs what; whether rent can be increased; subletting rules.Questions for the landlord: the three changes above, in plain words. For a consumer service: deposit rules and late-fee limits in your country.