Overview
The Balances extraction identifies contracts that explicitly create multiple separate recoupment balances — situations where certain costs can only be recouped against a specific subset of revenues, rather than against all revenues combined. Most contracts have a single shared balance and will return no entries here. A balance is only extracted when the contract explicitly ring-fences costs to specific revenue streams (e.g. “video costs recoupable solely from video income”, or “Album X costs recoupable only from Album X revenues”).When Balances Are Extracted
A balance is extracted when the contract language explicitly creates segregation between a cost pool and a revenue subset — meaning a deficit in that cost pool cannot be satisfied by revenues outside that subset.When Balances Are Not Extracted
No balances are extracted when:- All costs are recoupable from all revenues (a single cross-collateralized balance)
- The contract has no recoupable costs (flat fee, non-recoupable advances)
- The contract tracks costs in a named account administratively, but does not restrict which revenues can satisfy it
- Language describes a recoupment waterfall (recouped first from X, then from Y) rather than true ring-fencing
What Gets Extracted
Each balance entry contains:| Field | Description |
|---|---|
| Title | Short name for the balance (e.g. “Video Balance”, “Album X Balance”, “Carter Account”) |
| Description | What income and costs belong to this balance |
| Reasoning | The AI’s explanation of why this is a separate balance, citing the contract language that creates the segregation |
| Citations | The specific contract clauses that establish the balance |
Viewing Balances
Each balance card shows:- Title — the name of the balance, with citation indicators you can hover to see the source clause
- Description — a plain-language explanation of the balance; long descriptions can be expanded by clicking Read more
- Reasoning — click the Reasoning toggle to see the AI’s explanation of how this balance was derived from the contract language
Editing Balances
Click the edit icon to:- Add balance entries
- Modify titles or descriptions
- Remove incorrectly extracted balances