Is an AI-Drafted Contract Better Than No Contract?
05/09/2025
In a recent blog posted by Todd Janzen on his www.aglaw.us website, he posed this interesting question about AI-generated contracts, specifically, farmland lease contracts. With the growth of AI use in answering questions, simplifying meeting notes, creating strategic plans and a host of other tasks, can it create an appropriate legal contract?
Janzen asked Chat GPT: “Draft a lease for 80 acres of farmland in Marion County, Indiana at $250/acre for 1 year.”
The system responded with a 12 paragraph Farm Lease Agreement that is posted on his site at https://www.aglaw.us/janzenaglaw/2025/4/25/is-an-ai-drafted-contract-better-than-no-contract
He reports that, “The lease included the basic provisions, such as a description of the land, the term, rent provisions, insurance requirements, and some boilerplate provisions, such as integration clause and governing law.”
This information is easily accessed because there are many examples of farm leases available for free on the web through Purdue University as well as many other land grant universities.
“Still, there were some misses in the lease,” Janzen emphasized. “Chat GPT assumed that a farmland lease also included a structure of some sort, and therefore included provisions requiring the tenant (lessee) to perform “normal maintenance and minor repairs,” leaving the landlord (lessor) to perform “structural repairs.” Of course, this makes no sense for unimproved farmland.”
He went on to comment, “Similarly, the document allows either party terminate the lease early “upon 30 days’ written notice” in the event of a material breach by the other party. Landlords typically cannot terminate a farmland lease early due to the presence of growing crops, which are owned by the tenant under Indiana law.”
Overall, he gave Chat GPT a “B” grade because it answered the question that was posed by his request. He commented that this lease is better than no lease at all, but it is better as a starting point for the landlord and tenant to have appropriate discussions about the additional terms that need to be finalized.
For the opportunity to meet Todd Janzen in person and hear him speak on Ag Technology and the Law, attend the ASAC Annual Conference in Indianapolis, Indiana from November 2 – 4. Other speakers include Kip Tom, Ted McKinney, Don Lamb and a host of nationally recognized experts in their field. For more information about the Conference and to register to attend, go to:
ASAC 2025 Annual Conference
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This article is the opinion and perspective of the author and may or may not be consistent with those of anyone else. Mention of specific people or items in the article is not an endorsement of the individual, the company or the organization from which it originates.
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Don Tyler
Tyler & Associates
ASAC Board Member
In a recent blog posted by Todd Janzen on his www.aglaw.us website, he posed this interesting question about AI-generated contracts, specifically, farmland lease contracts. With the growth of AI use in answering questions, simplifying meeting notes, creating strategic plans and a host of other tasks, can it create an appropriate legal contract?
Janzen asked Chat GPT: “Draft a lease for 80 acres of farmland in Marion County, Indiana at $250/acre for 1 year.”
The system responded with a 12 paragraph Farm Lease Agreement that is posted on his site at https://www.aglaw.us/janzenaglaw/2025/4/25/is-an-ai-drafted-contract-better-than-no-contract
He reports that, “The lease included the basic provisions, such as a description of the land, the term, rent provisions, insurance requirements, and some boilerplate provisions, such as integration clause and governing law.”
This information is easily accessed because there are many examples of farm leases available for free on the web through Purdue University as well as many other land grant universities.
“Still, there were some misses in the lease,” Janzen emphasized. “Chat GPT assumed that a farmland lease also included a structure of some sort, and therefore included provisions requiring the tenant (lessee) to perform “normal maintenance and minor repairs,” leaving the landlord (lessor) to perform “structural repairs.” Of course, this makes no sense for unimproved farmland.”
He went on to comment, “Similarly, the document allows either party terminate the lease early “upon 30 days’ written notice” in the event of a material breach by the other party. Landlords typically cannot terminate a farmland lease early due to the presence of growing crops, which are owned by the tenant under Indiana law.”
Overall, he gave Chat GPT a “B” grade because it answered the question that was posed by his request. He commented that this lease is better than no lease at all, but it is better as a starting point for the landlord and tenant to have appropriate discussions about the additional terms that need to be finalized.
For the opportunity to meet Todd Janzen in person and hear him speak on Ag Technology and the Law, attend the ASAC Annual Conference in Indianapolis, Indiana from November 2 – 4. Other speakers include Kip Tom, Ted McKinney, Don Lamb and a host of nationally recognized experts in their field. For more information about the Conference and to register to attend, go to:
ASAC 2025 Annual Conference
= = = = = = = = =
This article is the opinion and perspective of the author and may or may not be consistent with those of anyone else. Mention of specific people or items in the article is not an endorsement of the individual, the company or the organization from which it originates.
= = = = = = = = =
Don Tyler
Tyler & Associates
ASAC Board Member
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