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Journal : rechtsvinding

The Legal Standing And Validity Of Smart Contracts as Assessed Under The Requirements of a Valid Contract in Indonesian Civil Law Chandera Halim
Rechtsvinding Vol. 4 No. 1 (2026)
Publisher : Civiliza Publishing

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.59525/rechtsvinding.1424

Abstract

This research examines the legal standing and validity of smart contracts under the requirements of a valid contract in Indonesian civil law, particularly within the framework of Article 1320 of the Indonesian Civil Code (Burgerlijk Wetboek), which requires consent, legal capacity, a specific object, and a lawful cause. Using normative juridical research with statutory and conceptual approaches, the study analyzes civil law provisions, regulations on electronic information and transactions, and doctrinal perspectives on digital contract law. The findings indicate that smart contracts can, in principle, fulfill the elements of a valid contract, especially regarding consent and object, as long as the parties’ intentions are identifiable and the contractual terms are sufficiently clear despite being expressed in code. However, challenges remain in assessing legal capacity, ensuring genuine consent, and determining lawful cause, particularly when execution occurs autonomously without direct human involvement. Therefore, although Indonesian civil law allows their recognition, clearer legal interpretation and regulatory development are necessary to ensure legal certainty and protection of the parties.
From Party Autonomy to Algorithmic Autonomy: Reconstructing the Principle of Freedom of Contract in Artificial Intelligence-Generated Contracts Chandera Halim
Rechtsvinding Vol. 4 No. 2 (2026)
Publisher : Civiliza Publishing

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.59525/rechtsvinding.1971

Abstract

The increasing use of artificial intelligence in drafting, reviewing, and negotiating contracts challenges the traditional conception of freedom of contract, which is founded on the autonomous will, informed consent, and equal bargaining position of the contracting parties. This study examines whether contracts generated or substantially shaped by artificial intelligence can still be regarded as genuine expressions of party autonomy and seeks to reconstruct the principle of freedom of contract in response to the emergence of algorithmic autonomy. The research employs a normative legal method using statutory, conceptual, and comparative approaches, supported by an analysis of contract law doctrines, electronic transaction regulations, and contemporary principles of artificial intelligence governance. The study finds that an artificial intelligence-generated contract may remain legally valid when the system functions merely as an instrument acting within parameters determined by legally competent parties. Nevertheless, formal consent alone is insufficient to demonstrate genuine contractual freedom when parties do not understand the operation of the artificial intelligence system, the origin of the generated clauses, or the legal risks arising from algorithmic errors, bias, and unequal technological capacity. The study proposes a reconstructed model of freedom of contract based on meaningful human control, informed algorithmic consent, transparency regarding the use of artificial intelligence, the ability to review and modify generated clauses, and clear attribution of responsibility for technological errors. It concludes that algorithmic autonomy should not replace party autonomy but must remain subordinate to human intention, fairness, accountability, and the protection of contracting parties.