Enigma: AI Contract Risk Scanner

Enigma is a web application built to provide instant, AI-powered risk analysis for legal contracts. Users can paste contract text and receive a clear, structured report that highlights potential risks, explains complex clauses in plain English, and offers actionable suggestions. This project was developed as a hackathon MVP, focusing on core functionality and a professional user experience.

✨ Features

• Paste & Scan: A large, clean textarea for pasting contract text.
• AI-Powered Analysis: Leverages the Google Gemini API to analyze legal documents for risks.
• Traffic Light Summary: Provides an immediate, color-coded overall risk assessment (Red, Yellow, Green).
• Detailed Risk Cards: Each identified risk is presented in a separate card detailing its severity, the issue, and a suggested mitigation.
• Clean & Responsive UI: A professional and trustworthy interface built with Tailwind CSS, ensuring a great experience on desktop, tablet, and mobile devices.
• Subtle Animations: Smooth, purpose-driven animations powered by GSAP provide a polished user experience without being distracting.

🛠️ Tech Stack

The project follows a simplified MERN-like architecture, optimized for rapid development and stability.

Frontend

• Framework: React (Vite)
• Styling: Tailwind CSS
• Animation: GSAP (GreenSock Animation Platform)
• HTTP Client: Axios

Backend

• Runtime: Node.js
• Framework: Express.js
• AI Integration: Google Gemini API (@google/generative-ai)

🚀 Running Locally

To get Enigma running on your local machine, follow these steps.

Prerequisites

• Node.js (v18 or higher)
• npm

1. Backend Setup

First, set up the server which handles the AI analysis.

# 1. Navigate to the server directory
cd server

# 2. Install dependencies
npm install

# 3. Create a .env file in the /server directory
#    and add your Google Gemini API key:
echo "GEMINI_API_KEY=your_api_key_here" > .env

# 4. Start the development server
npm run dev

The backend server will start on http://localhost:5000.

2. Frontend Setup

Next, set up the React client.

# 1. In a new terminal, navigate to the client directory
cd client

# 2. Install dependencies
npm install

# 3. Create a .env file in the /client directory
#    to specify the backend API URL:
echo "VITE_API_URL=http://localhost:5000/api" > .env

# 4. Start the frontend development server
npm run dev

The frontend will be available at http://localhost:5173 (or another port if 5173 is in use).

⚙️ How It Works

1. The user pastes their contract text into the React frontend.
2. On clicking "Scan Contract", the frontend sends the text via a POST request to the Express backend at /api/scan.
3. The backend validates the input length (min 300, max 20,000 characters).
4. The server constructs a detailed prompt, instructing the Google Gemini API to analyze the text and respond in a strict JSON format.
5. The Gemini API processes the contract and returns a structured JSON object containing the overallRisk, summary, and an array of risks.
6. The backend parses the AI's response and forwards the clean JSON to the frontend.
7. The React app dynamically renders the SummaryCard and RiskCard components to display the analysis to the user.

📝 API

The application exposes a single API endpoint for contract analysis.

POST /api/scan

Scans the provided contract text and returns a risk analysis.

Request Body:

{
  "contractText": "The full text of the contract..."
}

Success Response (200 OK):

{
  "overallRisk": "Red",
  "summary": "This contract presents a high level of risk due to one-sided liability and unfavorable payment terms.",
  "risks": [
    {
      "severity": "High",
      "title": "Unlimited Liability",
      "issue": "The clause holds you liable for any and all damages without a cap, which could be financially ruinous.",
      "suggestion": "Propose a liability cap, typically limited to the total value of the contract or a specified amount."
    },
    {
      "severity": "Medium",
      "title": "Net-90 Payment Terms",
      "issue": "The payment term of 90 days is excessively long and can cause significant cash flow problems.",
      "suggestion": "Negotiate for shorter payment terms, such as Net-30 or Net-45, to ensure timely compensation."
    }
  ]
}

Error Responses:

• 400 Bad Request: If contractText is missing or does not meet the length requirements.
• 500 Internal Server Error: If the Gemini API key is missing or an error occurs during AI analysis or JSON parsing.