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

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.

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Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2026-01-27
DOI
https://doi.org/10.5281/zenodo.18385663
Primary Topic
Digital Transformation in Law
Type
article
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article

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

Dilnurbek Burxonov
Zenodo (CERN European Organization for Nuclear Research)
Digital Transformation in Law
article

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

Dilnurbek Burxonov
article en

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.

Zenodo (CERN European Organization for Nuclear Research)
Institute for Legal Studies (HU)
Peace, Justice and strong institutions
Openalex Percentile: Top 80%
Digital Transformation in Law
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