We investigate the effectiveness of ChatGPT in extracting norms from contracts. Norms provide a natural way to engineer multiagent systems by capturing how to govern the interactions between two or more autonomous parties. We extract norms of commitment, prohibition, authorization, and power, along with associated norm elements (the parties involved, antecedents, and consequents) from contracts. Our investigation reveals ChatGPT’s effectiveness and limitations in norm extraction from contracts. ChatGPT demonstrates promising performance in norm extraction without requiring training or fine-tuning, thus obviating the need for annotated data, which is not generally available in this domain. However, we found some limitations of ChatGPT in extracting these norms that lead to incorrect norm extractions. The limitations include oversight of crucial details, hallucination, incorrect parsing of conjunctions, and inferring incorrect norm types and elements. Enhanced norm extraction from contracts can foster the development of more transparent and trustworthy formal agent interaction specifications, thereby contributing to improving multiagent systems.