03 / BRD

Business Rules Document

What rules must the product follow?

The Business Rules Document defines the rules, conditions, constraints, and decision logic that the product must follow.

Layer
Product
Primary purpose
Define the rules and constraints the product must follow.
Used by
Product / Design / Engineering / AI
On this page
01

What is it?

The Business Rules Document defines the rules and decision logic that determine how the product should behave under specific conditions.

Business rules can define:

  • Conditions
  • Constraints
  • Decisions
  • Exceptions
  • PRD

    Product intent

  • FSD

    Functionality

  • BRD

    Rules and constraints

  • UFD

    User behavior

02

Why do we need it?

A feature description tells us what a product can do, but it does not necessarily tell us what conditions govern that behavior. Without explicit rules, different people or AI agents may make different assumptions about the same scenario.

Without explicit rules

Feature
Assumptions
Different interpretations
Inconsistent behavior

With explicit rules

Feature
Business rules
Defined conditions
Defined behavior
Consistent implementation
03

When do we create it?

The BRD is created after the product functionality is understood well enough to identify the rules that govern it.

This is an information relationship, not a rigid waterfall. Rules may evolve as flows and design reveal new scenarios.

PRD
FSD
BRD
UFD / DSD / Engineering
Implementation
04

Who benefits from it?

  • Product

    Uses it to make business decisions explicit.

  • Design

    Uses it to understand states, constraints, validation, and exceptional scenarios that affect the experience.

  • Engineering

    Uses it as the source of defined conditions and expected behavior.

  • AI agent

    Uses it as explicit constraints instead of inventing behavior that was never specified.

05

What does it contain?

These are the fields a business rule can define.

  1. 01

    Rule ID

    A unique identifier for the rule.

  2. 02

    Rule Name

    A concise name that identifies the rule.

  3. 03

    Applies To

    The feature, module, or capability affected by the rule.

  4. 04

    Trigger

    The action or event that causes the rule to be evaluated.

  5. 05

    Condition

    The condition under which the rule applies.

  6. 06

    Expected Behavior

    What the system should do when the rule condition is met.

  7. 07

    Exceptions

    Defined situations where the normal behavior does not apply.

  8. 08

    Constraints

    Limits or restrictions the rule imposes.

  9. 09

    Priority

    The importance of the rule when relevant.

  10. 10

    Dependencies

    Other rules, features, or conditions that affect the rule.

Not every rule needs every field — the exact fields used can vary depending on the type of rule.

06

What does it NOT contain?

  • Product vision
  • Product goals
  • Feature inventory
  • Complete user journeys
  • Screen layouts
  • Visual design
  • Database schema
  • API contracts
  • Technical architecture
  • Implementation code

FSD

What the feature does.

BRD

What rules govern the feature.

UFD

How the user moves through it.

DSD

How the experience behaves and looks.

DDD / ASD / TAD

How it is technically implemented.

07

What does a rule look like?

Rule

Rule ID
RULE-001
Rule name
Project Name Required
Applies to
Create Project

Trigger

User submits the Create Project form.

Condition

Project name is empty.

Expected behavior

Prevent project creation and request a project name.

Exceptions

None defined.

Priority
High

Common rule types

  1. 01

    Validation

    Determines whether input or a condition is acceptable.

  2. 02

    Eligibility

    Determines whether a user or entity is allowed to perform an action.

  3. 03

    State

    Defines behavior based on the current state of something.

  4. 04

    Limit

    Defines a boundary such as quantity, time, or frequency.

  5. 05

    Calculation

    Defines how a value should be derived.

  6. 06

    Access

    Defines who can perform or access something.

  7. 07

    Exception

    Defines behavior for an exceptional scenario.

08

How does AI use it?

The BRD gives the AI agent explicit behavioral constraints. It tells the agent what conditions matter and what behavior has already been decided.

BRD
Rules

AI understands

  • What conditions matter
  • What behavior is expected
  • What constraints apply
  • What exceptions are defined
  • What decisions have already been made

The BRD does not tell the AI exactly how to write the code. It tells the AI what behavior the implementation must satisfy.

Context

PRD

Functionality

FSD

Constraints

BRD

Implementation behavior

AI Instructions

09

Specification Gaps

If a scenario is important enough to affect implementation but the documentation does not define the expected behavior, the specification contains a gap.

Specification gap

Feature

Create Project

Scenario

The project name already exists.

Expected behavior

Not defined.

Decision required

  • A. Prevent creation
  • B. Allow duplicate names
  • C. Define another behavior

Paused until the decision is documented.

AI should implement decisions, not silently make important product decisions.

10

How does it connect to other documents?

FSD

“What can the feature do?”

BRD

“What rules must it follow?”

UFD

“How does the user move through it?”

DSD

“How should that behavior be experienced?”

DDD / ASD / TAD

“How is it implemented?”

A business rule can affect multiple downstream documents. For example:

RULE-001

Project name is required.

This may influence

  • UFD

    What happens when the user submits without a name?

  • DSD

    How is the invalid state represented?

  • ASD

    What response is returned if validation fails?

  • TAD

    Where should the rule be enforced?

11

Example

FSDWhat

Users can create a project.

BRDRule

Project name is required.

RULE-001

Project name is required.

RULE-002

Project name cannot exceed the defined limit.

RULE-003

Only eligible users can create projects.

RULE-004

Duplicate project names follow a defined policy.

FSD

Create Project

BRD

RULE-001

UFD

User submits without project name

DSD

Validation state

Implementation

Rule enforcement

12

BRD Template

brd-template.md

# Business Rules Document

## 01. Rule

### Rule ID
RULE-001

### Rule Name

### Applies To

### Trigger

### Condition

### Expected Behavior

### Exceptions

### Constraints

### Priority

### Dependencies

---

## Specification Gap

### Feature

### Scenario

### Expected Behavior

### Decision Required

### Implementation Status
13

Common mistakes

  • Writing rules as vague statements.
  • Mixing UI decisions into business rules.
  • Putting complete user flows inside the BRD.
  • Defining technical implementation instead of behavior.
  • Leaving important exceptions undocumented.
  • Creating contradictory rules.
  • Using rules to compensate for unclear product scope.
  • Letting AI choose behavior for undocumented scenarios.