Liability for Breach of Contract by Autonomous AI in Cross-Border Contracts

Authors

  • peter asyer Universitas Sriwijaya Author
  • Perdana Rinces Manalu Universitas Sriwijaya Author
  • Satria Fajar Kuswanto Universitas Sriwijaya Author
  • Rizha Claudilla Putri Universitas Sriwijaya Author

DOI:

https://doi.org/10.69836/synergy.v1i2.163

Keywords:

Artificial Intelligence, Wanprestasi, Hukum Perdata, Hukum Perdata Internasional, Subjek Hukum

Abstract

The development of Artificial Intelligence (AI) has generated new challenges in civil law, particularly regarding breach of contract in cross-border transactions. The autonomous decision-making capacity of AI systems raises questions concerning their legal status and the allocation of contractual liability. This study aims to analyze liability for breaches of contract caused by AI under Indonesian civil law and to examine the determination of the applicable law (lex causae) in cross-border contracts from the perspective of private international law. Using a normative juridical method with conceptual, case-based, and comparative approaches, this research draws upon the Indonesian Civil Code, the Electronic Information and Transactions Law, the Copyright Law, and relevant legal literature. The findings show that autonomous AI cannot be recognized as a legal subject in the Indonesian legal system due to the absence of free will and moral consciousness, so liability remains attributed to the human or legal entity operating the system under the doctrine of vicarious liability. The case of Quoine v B2C2 confirms that contracts executed through algorithms remain legally binding on human or corporate parties rather than AI systems. From a private international law perspective, the study affirms that the use of AI does not alter the fundamental principles for determining lex causae, which continue to rely on connecting factors such as lex loci contractus, lex loci solutionis, and party autonomy.

References

Baeyaert, J. (2025). Beyond personhood: The evolution of legal personhood and its implications for AI recognition. Technology and Regulation. https://doi.org/10.71265/ssvg8a97

Cassar, D. P. (2023). The notion of mistake in blockchain-based smart contracts: An analysis of B2C2 Ltd v Quoine Pte Ltd from a comparative perspective. European Journal of Comparative Law and Governance, 10(2), 253–278. https://doi.org/10.1163/22134514-bja10034

Chairuddin, A., Rahmadani, F., & Hidayat, M. L. (2024). The role of Artificial Intelligence in enhancing efficiency, transparency, and inclusivity of public services in Indonesia: Opportunities, challenges, and strategic approaches. Indonesian Journal of Administrative Policy, 5(2), 112–125. https://ojs.unm.ac.id/iap/article/view/67932

Diamantis, M. E. (2023). Vicarious liability for AI: Addressing algorithmic harms through traditional responsibility models. Indiana Law Journal, 99(1), 1–48. https://www.repository.law.indiana.edu/ilj/vol99/iss1/7/

Disemadi, H. S. (2024). Human dignity and the challenge of AI as a legal subject. MMH – Jurnal Ilmu Hukum, 9(1), 45–63. https://ejournal.undip.ac.id/index.php/mmh/article/viewFile/69165/28040

DLA Piper Intelligence. (2019). B2C2 Ltd v Quoine Pte Ltd [2019] SGHC(I) 03 (SICC Judgment). DLA Piper Investment Rules Publication. https://www.dlapiperintelligence.com/investmentrules

El Fakhriah, A. (2023). Cross-border of jurisdiction between arbitration and district court in Indonesia. FIAT: Jurnal Ilmu Hukum, 7(2), 201–215. https://jurnal.fh.unila.ac.id/index.php/fiat/article/download/3175/2034/13392

Gordon, J.-S. (2021). Artificial moral and legal personhood. AI & Society, 36(4), 1037–1048. https://doi.org/10.1007/s00146-020-01063-2

Huang, Y. (2025). The interplay between connecting factor formulas and private international law theories. Scholars International Journal of Law, Crime and Justice, 8(8), 217–218. https://doi.org/10.36348/sijlcj.2025.v08i08.003

Hukumonline. (2023). Subjek hukum dalam KUHPer: Orang dan badan hukum. Klinik Hukumonline, 1(1), 1–5. https://www.hukumonline.com/klinik/a/subjek-hukum-dalam-hukum-perdata-dan-hukum-pidana-lt52bdff2508616/

Kalagi, S. (2024). Legal liabilities of Artificial Intelligence. Journal of Legal Studies and Social Sciences, 12(1), 45–62. https://ojs.journalsdg.org/jlss/article/view/3861

Kovač, M. (2022). The rise of the mailbox rule and formation of contracts in English, US and Canadian law. Liverpool Law Review, 43(2), 149–174. https://doi.org/10.1007/s10991-022-09301-x

Lamont, R. (2021). Connecting factors. In A guide to global private international law (Chap. 4). Bloomsbury Publishing. https://doi.org/10.5040/9781509932085.CH-004

Meryadinata, G. L., Salman Najib, S. I., & Bastomi, A. (2025). Choice of law in international contracts based on the Hague Principles 2015: Indonesian positive law perspective. JS: Jurnal Ilmu Hukum, 11(2), 144–160. https://doi.org/10.33506/js.v11i2.4317

Mirzaian, A. G. (2020). Choice of law in electronic contracts. European Journal of Law and Technology, 11(2), 1–15. https://core.ac.uk/download/pdf/232774026.pdf

Moeliono, T. P., & Simanjuntak, M. B. B. (2024). Legal personality of Artificial Intelligence. Melintas: Jurnal Ilmu Hukum, 40(2), 200–224. https://journal.unpar.ac.id/index.php/melintas/article/download/8648/4485/28220

Negri, S. M. C. A. (2021). Robot as legal person: Electronic personhood in robotics and Artificial Intelligence. Frontiers in Robotics and AI, 8, Article 789327. https://doi.org/10.3389/frobt.2021.789327

Ooi, V., & Soh, K. P. (2020). Rethinking mistake in the age of algorithms: Quoine Pte Ltd v B2C2 Ltd. King’s Law Journal, 31(3), 367–372. https://doi.org/10.1080/09615768.2020.1815939

Pratama, A. M., & Kharisma, D. B. (2023). Civil liability regime for Artificial Intelligence in Indonesia: Become a future legal subject? Proceeding of the 5th International Conference on Law, Social Sciences, and Education (ICLSSE 2023), 728(1), 142–150. https://doi.org/10.2991/978-2-38476-228-4_20

Republik Indonesia. (2022). Undang-Undang Nomor 27 Tahun 2022 tentang Perlindungan Data Pribadi. Lembaran Negara Republik Indonesia Tahun 2022 Nomor 229. https://peraturan.bpk.go.id/Details/229798/uu-no-27-tahun-2022

RPC Legal. (2021, April). Singapore Court of Appeal issues landmark decision in first cryptocurrency-related trial. RPC The View from Asia. https://www.rpclegal.com/snapshots/the-view-from-asia/spring-2021/singapore-court-of-appeal-issues-landmark-decision-in-first-cryptocurrency-related-trial/

Singapore Court of Appeal. (2020). Quoine Pte Ltd v B2C2 Ltd [2020] SGCA(I) 2. https://www.judiciary.gov.sg/docs/default-source/judgments-docs/quoine-pte-ltd-v-b2c2-ltd.pdf

Sofian, A. (2025). Konsepsi subjek hukum dan pertanggungjawaban pidana Artificial Intelligence. Halu Oleo Law Review, 9(1), 13–26. https://holrev.uho.ac.id/index.php/journal/article/download/129/42

Tim Hukumonline. (2024). Pengertian wanprestasi, akibat, dan penyelesaiannya. Hukumonline, 1(1), 1–5. https://www.hukumonline.com/berita/a/unsur-dan-cara-menyelesaikan-wanprestasi-lt62174878376c7/

Turdialiev, M. A. (2024). AI and automated decision-making systems in private international law. International Journal of Law and Policy, 2(7), 34–50. https://pdfs.semanticscholar.org/9155/4fd2464069720175c71d4386d264821cf873.pdf

Downloads

Published

2025-12-29

How to Cite

Liability for Breach of Contract by Autonomous AI in Cross-Border Contracts. (2025). Synergy: Journal of Collaborative Sciences , 1(2), 277-293. https://doi.org/10.69836/synergy.v1i2.163

Similar Articles

You may also start an advanced similarity search for this article.