Surden on Computable Contracts

Professor Harry Surden of the University of Colorado Law School has published Computable Contracts, UC Davis Law Review, Vol. 46, pp. 629-700 (2012).

Here is the abstract:

It is possible to formulate contractual obligations so that computers can “understand” and make prima-facie compliance assessments with specified terms and conditions. Such a contractual obligation, formulated specifically for computer processability, is what this Article terms a “computable contract.” Computable contracts are not merely theoretical, but instead are increasingly being used in economically significant domains. Certain widely used financial contracts exemplify this model. The emergence of computable contracts has largely been unrecognized in the legal literature. However, computable contracting is not extensible across all, or even most, contracting scenarios. Rather, it is limited to a small subset of contracting scenarios involving standardization, and relative legal and factual certainty.

Drawing upon computer science research, this Article provides a theoretical account of computable contracting. It first explains how firms can communicate contracting information to computers by representing contracts as data instead of (or in addition to) the traditional written language form. Formalizing contractual obligations in this way is what is termed “data-oriented” contracting. The representation of contractual obligations as data, in turn, allows for novel contracting properties. For example, parties can effectively “translate” certain contractual criteria into a comparable set of computer-processable rules. To make contracts “computable”, parties provide computer systems with external data that is relevant to performance. This model is supported by contemporary examples of computable contracts in domains ranging from finance to intellectual property. This Article also provides principles for distinguishing contracting scenarios that are amenable to computability from those that are not.

Click here for video (in QuickTime format, .mov) of Professor Surden’s presentation of this article at Stanford Law School, October 2011.

Click here for the abstract of Professor Surden’s presentation of this article at Stanford Law School, October 2011.

This entry was posted in Applications, Articles and papers, Presentations, Videos and tagged , , , , , , , , , , , , , , , , . Bookmark the permalink.

One Response to Surden on Computable Contracts

  1. Pingback: Surden: Video of presentation: Computable Contracts | Legal Informatics Blog

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s