Contracts formed by software: An approach from the law of mistake

A ‘Contracting Problem’ arises when software is used to autonomously enter into contracts without human input. Questions arise as to how and whether there can be an expression of an objective intention to be legally bound. This article considers three leading solutions to the Contracting Problem. Th...

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Main Author: OOI, Vincent
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2019
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Online Access:https://ink.library.smu.edu.sg/caidg/3
https://ink.library.smu.edu.sg/context/caidg/article/1002/viewcontent/SSRN_id3322308.pdf
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Institution: Singapore Management University
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spelling sg-smu-ink.caidg-10022023-07-21T02:14:05Z Contracts formed by software: An approach from the law of mistake OOI, Vincent A ‘Contracting Problem’ arises when software is used to autonomously enter into contracts without human input. Questions arise as to how and whether there can be an expression of an objective intention to be legally bound. This article considers three leading solutions to the Contracting Problem. The ‘Mere Tools Theory’, which views software as ‘mere tools’ of communication, is too harsh as it binds users to any software malfunction. The Agency Approach, which treats software as Electronic Agents, capable of contracting on behalf of their users, is untenable as it ascribes unrealistic characteristics to software. The article submits that the optimal solution is to extend the objective theory of contract. Where software produces an unintended consequence, this should be seen as a mistake. An optimal way of risk allocation is for parties to be bound by the representations of their software, unless the other party has knowledge of the mistake. 2019-02-01T08:00:00Z text application/pdf https://ink.library.smu.edu.sg/caidg/3 info:doi/10.2139/ssrn.332208 https://ink.library.smu.edu.sg/context/caidg/article/1002/viewcontent/SSRN_id3322308.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Centre for AI & Data Governance eng Institutional Knowledge at Singapore Management University Contract Law Law and Technology Contracts Science and Technology Law
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Contract Law
Law and Technology
Contracts
Science and Technology Law
spellingShingle Contract Law
Law and Technology
Contracts
Science and Technology Law
OOI, Vincent
Contracts formed by software: An approach from the law of mistake
description A ‘Contracting Problem’ arises when software is used to autonomously enter into contracts without human input. Questions arise as to how and whether there can be an expression of an objective intention to be legally bound. This article considers three leading solutions to the Contracting Problem. The ‘Mere Tools Theory’, which views software as ‘mere tools’ of communication, is too harsh as it binds users to any software malfunction. The Agency Approach, which treats software as Electronic Agents, capable of contracting on behalf of their users, is untenable as it ascribes unrealistic characteristics to software. The article submits that the optimal solution is to extend the objective theory of contract. Where software produces an unintended consequence, this should be seen as a mistake. An optimal way of risk allocation is for parties to be bound by the representations of their software, unless the other party has knowledge of the mistake.
format text
author OOI, Vincent
author_facet OOI, Vincent
author_sort OOI, Vincent
title Contracts formed by software: An approach from the law of mistake
title_short Contracts formed by software: An approach from the law of mistake
title_full Contracts formed by software: An approach from the law of mistake
title_fullStr Contracts formed by software: An approach from the law of mistake
title_full_unstemmed Contracts formed by software: An approach from the law of mistake
title_sort contracts formed by software: an approach from the law of mistake
publisher Institutional Knowledge at Singapore Management University
publishDate 2019
url https://ink.library.smu.edu.sg/caidg/3
https://ink.library.smu.edu.sg/context/caidg/article/1002/viewcontent/SSRN_id3322308.pdf
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