Algorithmic Mistakes in Machine-Made Contracts: The Legal Consequences of Errors in Automated Contract Formation

Automated contract formation is on the rise. The legal consequences of computer errors in the conclusion of machine-made contracts are not straightforward though. This article makes three main contributions to the existing literature. First, it provides a bird’s-eye view of computer errors and proposes a taxonomy for algorithmic mistakes. Specifically, it introduces a distinction between automation mistakes and autonomy mistakes. Second, it illustrates how the rules on mistake under traditional contract law can be applied to algorithmic mistakes de iure condito. Third, and after highlighting the main shortcomings of the application of traditional contract law, it elaborates on the scope and remedial scheme of a specific provision on algorithmic mistake de iure condendo.