Author(s): Satish Kumar

Abstract: In Indian law, a binding contract requires free consent, that is, neither party is subjected to coercion or duress, and they may obey it in good faith. The advent of automated electronic contracts, enabled by AI, algorithmic negotiation, and digital agents,  presents a serious challenge to this bedrock principle. This paper argues that the traditional requirement of free consent may not be as salient in this new landscape of AI-enabled contracting and raises tensions between human autonomy and machine-based mediation. After an initial examination of Sections 13 and 14 of the Indian Contract Act, 1872, the analysis evaluates the effect of coercion, misrepresentation and consensus ad idem on stylised orders structured algorithmically. Build on doctrinal, comparative and analytical methodology it explores national and international case law including legal models from the EU and US. We suggest the need to re-evaluate Indian contract law in light of the new realities and propose doctrinal innovations of presumptions of informed consent and regulatory mechanisms to ensure algorithmic transparency. It makes the case for an interdisciplinary approach to reform using lessons learned from law, technology and behavioural sciences. In the process, it provides the conceptual underpinning of “algorithmic consent” that buttresses contractual autonomy while not opposing technological change.

DOI: 10.22271/civillaw.2025.v5.i1b.131

Pages: 142-149 | Views: 81 | Downloads: 36

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