THE CONCEPT OF ALGORITHMIC CONTRACTS AND THEIR ROLE IN MODERN CONTRACTUAL PRACTICE

Abstract

The article focuses on the use of various algorithms (digital assistants, bots, electronic agents, etc.) in contractual practice. The study is relevant because algorithmic contracts are becoming widespread in modern practice, since the involvement of an algorithm (computer program) in the formation or performance of contracts significantly saves time and efforts for concluding contracts using electronic communication. However, the more complex the algorithm, the greater the likelihood of its unforeseen functioning, which jeopardizes the validity of the contract as a whole. This is especially true for algorithms based on artificial intelligence systems.The concept of algorithmic contracts has not been studied in domestic legal science, and foreign doctrine is currently making its first attempts to analyze it and formulate approaches to regulating relations arising from the conclusion of such contracts. Therefore, the purpose of this study is to define the concept of algorithmic contracts, to clarify their place in modern contractual practice, and to formulate approaches to regulating the problems arising from the formation of such contracts. The article concludes that an algorithmic contract is a contract the formation, performance or determination of the terms of which is carried out by means of an algorithm, which may be a digital assistant, bot or other program that provides automatic and/or autonomous decision-making in the process of such formation, performance or determination of terms. The author identifies the main problems that arise in the practice of entering into algorithmic contracts and suggests ways to solve them, taking into account the approaches formulated by the United Nations Commission on International Trade Law and the European Law Institute.