4
6 Comments

I built an AI tool that explains legal contracts in plain language. Here's why and how.

Last year I bought a house in Germany. If you've been through a German property purchase, you know what that means: a notary appointment with a stack of documents — purchase contract (Kaufvertrag), land registry extracts, loan agreements, building regulations, and more. The notary reads everything aloud while you sit there trying to follow along.

I'm a developer. I can read complex code all day. But that purchase contract might as well have been in a different language. Dense legal clauses, nested conditions, references to paragraphs in other documents — I understood maybe 60% of it.

Everything worked out, but the experience stuck with me. We all sign important documents — property contracts, employment agreements, NDAs, freelance contracts — and most of us don't fully understand what we're agreeing to. The alternative is paying a lawyer 200+ EUR/hour for what amounts to "is this normal?"

So I built explains.app. You upload a PDF (or Word doc, or text file) and the AI reads it section by section. For each section, you get:

  • A plain-language explanation next to the original text

  • Risk flags for hidden fees, auto-renewals, liability clauses

  • A glossary of legal terms

  • AI chat to ask follow-up questions (on the Pro plan)

The tech stack: Next.js 14, Supabase (auth + DB + storage), OpenAI GPT-4o for explanations, Google Gemini for OCR on scanned docs, Stripe for billing, QStash for background processing.

Current numbers: Just launched.

What's next: I'm focusing on improving the AI explanations for employment contracts (they have the most varied structures) and adding more export formats.

Happy to answer any questions about the build, the market, or the tech.

posted toAvatar for product explains.app
explains.app
  1. 1

    Hey — just went through your product, really interesting idea.

    Feels like it has potential for much higher user adoption with the right growth push.

    We help apps get more installs and real users via targeted promotion.

    Let me know if you’d like to explore.

    1. 1

      Thanks — not looking for paid promotion at the moment.

      1. 1

        No worries at all — totally understand 😊

        If you ever decide to explore creator-based growth, we’d be happy to share some ideas tailored to your app.

        Wishing you the best with your launch 🚀

  2. 1

    This is a really cool product, I like how it tackles a real problem that most people just accept.

    Curious about a couple of things:

    • Do you plan to go beyond explanation and suggest possible counter clauses or negotiation points?

    • Also, how are you handling sensitive data/privacy, especially for legal documents?

    Would love to hear how you're thinking about these.

    1. 1

      Thanks so much — really appreciate that!

      Great questions:

      1. Counter clauses / negotiation points: Not yet, but it's definitely on the roadmap. Right now the focus is on making sure people truly understand what they're about to sign — because most don't. Once that foundation is solid, suggesting alternatives and negotiation angles is a natural next step.

      2. Privacy & sensitive data: This was a top priority from day one. Documents are stored with encryption at rest, and each user's data is fully isolated using Row Level Security — no user can ever access another user's files. Documents are processed through AI (OpenAI/Gemini) for explanations, but we don't use your documents to train any models — they're only used for your analysis. You can delete your documents anytime from your dashboard.

      Building this solo, so feedback like yours genuinely helps shape what comes next. If you ever try it, I'd love to hear what you think!

      1. 1

        Makes sense, focusing on understanding first before jumping into negotiation is the right approach. Glad to see that privacy is being taken care of for such sensitive documents.

        cheers!!