Regulating Contractual Imbalance In The Terms Of Cloud Computing Contracts in Palestine, An Comparative Study

This research analyzes the legal texts governing contract theory in Palestinian law and to address issues of imbalance in cloud computing contracts. Using an Amazon Web Services (AWS) contract as a case study, the study illustrates the power asymmetry between providers and subscribers during the contract execution phase. The study involves a doctrinal analysis of Palestinian legislation, specifically the rules regulating electronic transactions and the general principles of contract law derived from the Mejelle Code. For comparative perspective, the study references the UNCITRAL Model Law on Electronic Commerce. The analysis demonstrates that current Palestinian law—namely Decree-Law No. (15) of 2017 on Electronic Transactions and Decree-Law No. (17) of 2024 on Electronic Transactions and Trust Services— requires amendment. The study argues for introducing specific legislative provisions to ensure fairness, prevent the exploitation of providers’ economic dominance, and better protect cloud computing users. The research concludes that a significant imbalance exists in cloud computing contracts, as providers retain exceptional unilateral powers to form and modify agreements. This legal dominance underscores the inadequate representation of subscribers’ interests. Consequently, the study emphasizes the urgent need to reform national legislation by prohibiting imbalanced terms— such as clauses allowing unilateral modification, termination, and excessive penalties—and by developing a dedicated legal framework for cloud computing contracts to ensure balance throughout the execution phase.