Single tool 'dynamic_action_tool' with critical definition gaps. Tool name violates verb_noun convention (should be 'execute_action' or similar). Description is generic and does not explain WHEN to use it or what business actions are available. Input schema present but 'params' field is underspecified (type: object with no properties defined, no additionalProperties constraint). No output schema documented. Parameters lack actionable constraints, 'action' maxLength=50 but no enum of valid actions, no guidance on discovery. 'params' description says 'merged from template.paramSchema and tenant.customParams' but does not explain what those are or how to construct them. No error handling guidance. Tool is dynamically registered from database, making static schema validation impossible, this is a fundamental design issue for MCP.

• Rename tool to 'execute_business_action' or 'invoke_action' to follow verb_noun convention and signal intent clearly.
• Add a companion discovery tool 'list_available_actions' that returns {tenantId, actionName, description, requiredParams[], optionalParams[]} so LLM can discover valid actions without hallucination.
• Replace generic 'params' object with explicit parameter definitions. If actions vary by tenant, document the mapping or provide a schema registry endpoint.
• Document output schema: {success: boolean, result?: object, error?: {code: string, message: string, recoveryHint: string}}.
• Add error handling guidance in description: 'Returns 400 if action not found (call list_available_actions first), 403 if tenant unauthorized, 500 if action fails. Include error.recoveryHint for LLM guidance.'