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Lost in Transmission: Unilateral Mistakes in Automated Contracts

Year of Publication: 2020
Month of Publication: 10
Author(s): Kelvin F.K. Low and Eliza Mik
Research Area(s): Contract Law
Journal Name: Law Quarterly Review
Volume Number: 136
Abstract:

In Quoine Pte Ltd v B2C2 Ltd [2020] SGCA(I) 2, the Singapore Court of Appeal had the opportunity to set out how the traditional contract law doctrine of unilateral mistake would apply to disputes in which the contracting process has been automated, in the context of a number of cryptocurrency trades. It concluded that when assessing the state of knowledge that is to be attributed to the parties at the time of a contract made by way of deterministic algorithms, the relevant inquiry cannot be directed at the parties themselves but rather, working backwards from the output that emanated from the programs, must be directed at the programmers. This paper sets out the problems with the court's conclusion.

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