AUTOMATION OF CONTRACTUAL OBLIGATIONS IN THE DIGITAL ENVIRONMENT: LEGAL RISKS AND LIABILITY ISSUES

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Authors: Dilnurbek Burxonov
Cited by: 0

Abstract

This article examines the legal nature of the automation of contractual obligations in the digital environment and analyzes the legal risks and liability issues arising from the application of automated execution mechanisms. The study explores automated contractual performance from the perspective of classical institutions of contract law, including contractual autonomy, consent, fault, liability, and the principle of justice. Particular attention is paid to legal uncertainty caused by algorithmic execution, technical failures, and the limited ability of existing legal frameworks to adequately regulate such relations. The article also analyzes the problem of allocating liability in cases where contractual obligations are improperly performed due to technical errors, system malfunctions, or incorrect algorithmic interpretation of contractual terms. It is argued that automated execution mechanisms, while increasing efficiency and reducing transaction costs, may weaken legal certainty and undermine fairness if not supported by appropriate legal safeguards. Based on the research findings, the article formulates scientific and practical recommendations aimed at improving normative regulation, clarifying legal responsibility, and ensuring a balanced integration of automated execution mechanisms into modern contract law.

Fields of Study & Subjects

Digital Transformation in Law Digitalization Law and Regulation European and International Contract Law

Publication details

Journal / source
Zenodo (CERN European Organization for Nuclear Research)
Publication date
27 January 2026
Language
EN