Miscellaneous  |  10/09/2024

Automation of Contracting Simplified by UN Model Law

The United Nations Commission on International Trade Law (UNCITRAL) has adopted a Model Law that is intended to standardize and facilitate the formation and performance of automated contracts online. As a member of the E-Commerce Working Group, Jörg Hoffmann, a researcher at the Institute, participated in several discussion rounds on the drafting of the Model Law.

Meeting room at the United Nations in Vienna with MPI sign
Meeting room at the United Nations in Vienna with MPI sign. Photo: Jörg Hoffmann
UNO building in Vienna.
UNO building in Vienna. Photo: Jörg Hoffmann

The Institute is officially recognized by UNCITRAL due to its research focus in the field of Artificial Intelligence (AI) and Data Law respectively. The technology-specific research approach, which the Institute pursues more closely, especially in invention and creation processes in the IP area, helped in the preliminary work and in the final version, which was adopted by the UNCITRAL Commission this summer at its 57th session in New York.


The Model Law provides a legal framework to enable the use of automation in contracts, including the use of AI technologies and “Smart Contracts”, as well as for machine-to-machine transactions. It is intended to complement and supplement existing laws on electronic contracting, particularly those based on other UNCITRAL texts on electronic commerce. These have already been adopted in over a hundred jurisdictions worldwide. The Model Law is the first piece of legislation to emerge from UNCITRAL's exploratory work on legal issues relating to the digital economy and digital commerce. One of its primary objective is to reduce legal uncertainties and transaction costs, thus promoting AI-driven innovation. Meanwhile, work continues on related areas, such as data contracts and distributed ledger technology (blockchain).


About UNCITRAL
The United Nations Commission on International Trade Law (UNCITRAL) is the core legal body of the United Nations system in the field of international trade law. Its mandate is to remove legal barriers to international trade through the progressive modernization and harmonization of trade law. It prepares legal texts in a number of key areas such as international commercial dispute settlement, electronic commerce, insolvency, international payments, sale of goods, transport law, procurement and infrastructure development. 
 

Press release of UNCITRAL
Documents of the UNCITRAL Working Group Electronic Commerce