How to use the Diligence Issue Extraction agent skill

What is an agent skill and what does this one do?

An agent skill is a folder containing a SKILL.md file that gives an AI agent specific instructions for a task. When a request matches the skill's description, the agent follows its workflow instead of improvising.

This skill, diligence-issue-extraction, is for a first-pass review of a large data room. It inventories VDR folders against a request list and notes gaps where the request list has no matching content. It applies a materiality filter so the agent does not review every document. For each document it reads, it checks standard concerns for that category, such as change-of-control clauses, assignment restrictions, IP ownership gaps, and litigation. Findings are written in the house memo format, and legal citations are tagged by source so reviewers can see what needs verification.

• Inventory VDR folders and flag request categories with no content
• Filter documents by materiality thresholds in your configuration
• Check material contracts for change of control, assignment, exclusivity, MFN, termination rights and unusual indemnities
• Check corporate, IP, employment and litigation documents against their standard extraction sets
• Tag each citation with its source, for example [Westlaw], [CourtListener] or [model knowledge — verify]

Install the skill

Download the diligence-issue-extraction ZIP from this page and unzip it. The package contains a single file, SKILL.md. You can install it in one of two places, depending on whether you want it available everywhere or only in one project.

For all your projects, unzip the folder into ~/.claude/skills/. For a single project, unzip it into that project's .claude/skills/ folder.

Alternatively, upload the skill in the Claude apps under Settings → Capabilities → Skills.

• Personal install: ~/.claude/skills/
• Project install: .claude/skills/ inside the project folder
• Claude apps: Settings → Capabilities → Skills, then upload

Set up the required configuration files

The skill depends on configuration files from the Claude for Legal corporate-legal plugin. It reads them before doing any work. Without them, the skill does not run correctly, so set them up first.

The source requires two files under ~/.claude/plugins/config/claude-for-legal/corporate-legal/: CLAUDE.md, which holds your diligence categories, materiality thresholds and issues memo format, and deals/[code]/deal-context.md, which holds deal-specific thresholds and the VDR location. If deal-context.md does not exist, the skill asks which deal you mean.

• Required: CLAUDE.md in the corporate-legal config folder
• Required: deals/[code]/deal-context.md for each deal
• Optional: a VDR MCP connector for Box, Intralinks or Datasite, which lets the skill pull the index directly
• Optional: a legal research connector such as Westlaw or CourtListener for citation checks

How to trigger the skill with natural requests

You do not need to type a command. The skill is designed to activate when you use phrases like the ones below, or when you point the agent at VDR documents. The source also lists /diligence-issue-extraction with an optional argument of a VDR folder path or category name.

Be specific about the folder or category when you can. A request naming a folder gives the agent a clear starting point for the inventory step.

• "Review the data room for the Acme deal"
• "Extract issues from /02-Contracts"
• "Run a diligence review on the IP folder"
• "What's in the VDR?"
• "Here are the documents in /03-IP, find the issues"

Read the output

The skill produces a VDR inventory table with request category, VDR folder, document count and status, followed by a list of gaps. Findings follow the issue template in your CLAUDE.md. If your firm's seed memo uses that template, the skill uses it exactly. If the seed memo used bullets, the output uses bullets.

Findings are given a severity level under your house scheme. If the house scheme is red, yellow and green, red marks issues that affect deal value or structure.

• Inventory table: request category, VDR folder, docs, status
• Gaps: request categories with no VDR content, which need a follow-up request
• Each finding: issue title, category, severity, documents, finding, recommendation
• Citations keep their source tag so unverified ones can be checked first

Safety notes: scripts and network access

The skill does not run scripts. It does use the network. If a VDR MCP connector or a legal research connector is configured, the agent sends requests through it to retrieve the index, documents or citations. Check which connectors are attached before you start a review, and confirm that the data room host and research tool are ones your firm has approved for that deal.

The skill also tells the agent not to fill gaps silently. If a research query returns few or no results, the agent reports that and offers options, including web search, which is tagged [web search — verify]. Statute descriptions the agent cannot confirm from retrieved text should be marked [statute unretrieved — verify] rather than guessed.

• No scripts are run by this skill
• Network use happens through any VDR or legal research connectors you configure
• Web search is only used if you choose that option, and its results are tagged for verification
• Matter files are written under the corporate-legal matters folder; other matters are not read unless cross-matter context is on

Tips for a useful first-pass review

Set your materiality thresholds in CLAUDE.md and deal-context.md before the first run. The skill reviews documents top-down until it hits the threshold, so vague thresholds lead to vague coverage.

Review the gaps list first. A request category with no VDR content is often the most important follow-up for the deal team.

Check tagged citations, starting with those marked verify. The source states that citations carrying verify tags have higher fabrication risk.

• Define thresholds for contracts (for example by stated value) before running
• Start with the inventory and gaps, then review material categories
• Use folder names or category names in your request to narrow the scope
• Treat every finding as a draft for lawyer review