COMPACT: Building Compliance Paralegals via Clause Graph Reasoning over Contracts

Ayush Singh, Dishank Aggarwal, Pranav Bhagat, Ainulla Khan, Sameer Malik, Amar Prakash Azad


Abstract
Contract compliance verification requires reasoning about cross-clause dependencies where obligations, exceptions, and conditions interact across multiple provisions, yet existing legal NLP benchmarks like ContractNLI and CUAD focus exclusively on isolated single-clause tasks. We introduce COMPACT (COMpliance PAralegals via Clause graph reasoning over conTracts), a framework that models cross-clause dependencies through structured clause graphs. Our approach extracts deontic-temporal entities from clauses and constructs typed relationship graphs capturing definitional dependencies, exception hierarchies, and temporal sequences. From these graphs, we introduce ACE (Assessing Compliance in Enterprise)- a benchmark containing 4,700 carefully constructed compliance scenarios derived from 633 real-world contracts covering 26 types of agreements. Each scenario requires multi-hop reasoning across multiple clauses, and undergoes independent LLM-based validation to ensure quality. Evaluation reveals that multi-clause reasoning poses a fundamental challenge for state-of-the-art models (34-57% base accuracy), while training on ACE yields substantial improvements on compliance tasks (+22–43 % points) and also enhances general legal reasoning performance on other benchmarks (PrivaCI-Bench, ContractNLI).
Anthology ID:
2026.eacl-long.377
Volume:
Proceedings of the 19th Conference of the European Chapter of the Association for Computational Linguistics (Volume 1: Long Papers)
Month:
March
Year:
2026
Address:
Rabat, Morocco
Editors:
Vera Demberg, Kentaro Inui, Lluís Marquez
Venue:
EACL
SIG:
Publisher:
Association for Computational Linguistics
Note:
Pages:
8081–8112
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URL:
https://preview.aclanthology.org/ingest-eacl/2026.eacl-long.377/
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Bibkey:
Cite (ACL):
Ayush Singh, Dishank Aggarwal, Pranav Bhagat, Ainulla Khan, Sameer Malik, and Amar Prakash Azad. 2026. COMPACT: Building Compliance Paralegals via Clause Graph Reasoning over Contracts. In Proceedings of the 19th Conference of the European Chapter of the Association for Computational Linguistics (Volume 1: Long Papers), pages 8081–8112, Rabat, Morocco. Association for Computational Linguistics.
Cite (Informal):
COMPACT: Building Compliance Paralegals via Clause Graph Reasoning over Contracts (Singh et al., EACL 2026)
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PDF:
https://preview.aclanthology.org/ingest-eacl/2026.eacl-long.377.pdf