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Well-formatted prompts get better results. Think of formatting like organizing a brief – it helps the AI understand exactly what you want and process your instructions more accurately.

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Why Formatting Matters

AI models are trained on structured content from the web – legal documents, code, technical documentation. When you use clear formatting, the AI recognizes patterns and follows your instructions more precisely. It’s the difference between dumping everything in one paragraph versus organizing it into clear sections.

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Basic Formatting Tools

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Headers for Organization

Use headers to break your prompt into logical sections. The AI treats each section as a distinct instruction set. 
# Main Instruction
## Background Context  
### Specific Requirements
In most AI tools, you create headers with hashtags:
  • # = Primary heading (main topic)
  • ## = Secondary heading (subtopic)
  • ### = Tertiary heading (details)
After three hashtags, they’re just treated as regular text.

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Lists for Multiple Items

When you have multiple requirements or options, use lists instead of run-on sentences. Instead of this: “Review for liability issues and indemnification problems and warranty concerns and also check the limitation of liability” Use this: 
Review for:
- Liability issues
- Indemnification problems  
- Warranty concerns
- Limitation of liability caps

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Bold and Emphasis

Use formatting to highlight key instructions:
  • **Bold text** for important points
  • *Italic text* for definitions or clarification
  • CAPS sparingly for critical warnings

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Structuring Complex Prompts

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The Section Break Method

For multi-part prompts, use clear section breaks. This tells the AI when one instruction ends and another begins. 
## Context
I am the vendor reviewing a customer's MSA.
Low leverage situation.

## Task
Identify problematic liability provisions.

## Output Format
Table with three columns: Clause | Issue | Risk Level

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The Step-by-Step Format

When you need sequential analysis, number your steps: 
1. First, identify all payment terms
2. Then, check if any exceed 60 days
3. Finally, draft fallback language for any that do

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The Internal Notes Technique

Use formatting to separate what the AI should think about versus what it should output: 
### Internal Analysis
Consider whether this conflicts with our standard terms
and if the counterparty has legitimate business reasons.

### Output
Only show the final recommended redline with comment.
The AI will process the internal analysis but won’t include it in the response.

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Formatting for Different AI Models

Different AI tools respond better to different formatting styles: ChatGPT/GPT-4: Responds well to markdown with hashtag headers and clear bullets. Claude: Prefers section breaks and sometimes HTML-style tags like <context> and </context> for very clear boundaries. General Rule: When in doubt, use markdown formatting – it works across most platforms.

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Tables for Structured Information

When you need comparative analysis or multiple data points, request table format: 
Create a table comparing these three contracts:
| Document | Payment Terms | Liability Cap | Governing Law |
The AI will maintain this structure and fill in the data systematically.

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Common Formatting Mistakes

  • Wall of Text Don’t write everything in one giant paragraph. The AI struggles to identify distinct instructions and may miss key requirements.
  • Overformatting Don’t use every formatting option at once. Too much formatting becomes noise. Pick 2–3 techniques that serve your purpose.
  • Inconsistent Structure If you start with numbered steps, continue with numbers. Don’t switch between numbers, bullets, and headers randomly.
  • Missing Output Instructions Always specify how you want results formatted. Without guidance, the AI chooses its own format, which might not meet your needs.

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Quick Formatting Templates

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For Contract Review

## Document
[Type and party position]

## Focus Areas
- [Specific provision 1]
- [Specific provision 2]

## Output
Redlines with explanatory comments

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For Comparison

## Compare
Document A: [description]
Document B: [description]

## Format
Table showing differences only

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For Email Drafting

## Situation
[Brief context]

## Tone
Professional but firm

## Key Points
1. [Main point]
2. [Supporting point]

## Length
2-3 paragraphs maximum

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Special Characters and Symbols

Some symbols have special meaning in prompts:
  • --- creates a visual separator between sections
  • `code blocks` preserve exact formatting
  • > creates quoted text for examples
  • | helps create tables

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Testing Your Formatting

To check if your formatting is working:
  1. Look at your prompt – can you quickly identify each section?
  2. Run the prompt – does the AI address each section distinctly?
  3. Check the output – does it match your requested format?
If the AI is blending sections or missing instructions, add clearer breaks between sections.

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Remember

Good formatting isn’t about being fancy – it’s about being clear. The goal is to make your instructions so well-organized that the AI can’t misunderstand what you want. Think of it like writing a checklist for someone who’s never done this task before: the clearer the structure, the better the result.