🧑‍⚖️ Invalidity and Automatically Generated Contracts

An AI-generated contract may be invalid if:

• it lacks legally required elements,

• it contains vague or ambiguous language,

• it conflicts with mandatory legal provisions,

• it doesn’t follow formal requirements (e.g. written form),

• it doesn’t reflect the true will of the parties (often just auto-filled with no legal context).

📋 How to assess whether a contract is valid:

1. Check the legal requirements for that contract type

2. See if the text matches the purpose and parties’ agreement

3. Identify any unclear or confusing parts

4. Consult a lawyer – often a short review is enough

❌ Why AI contracts often fail:

• they generate generic text without understanding context

• they can’t assess your specific situation

• they miss risks and legal priorities

• they may contain legal errors without warning

• they create a “false sense of legality” without actual protection

📚 Real-life example:

A businesswoman used an AI tool to draft a supplier contract. When the supplier failed to deliver, she tried to enforce a penalty. But the contract said nothing about late delivery. The opposing lawyer argued the clause was too vague – and the court dismissed the claim.

✅ Lawyer’s Recommendation:

AI is a powerful tool – but it’s not a lawyer.
Get your AI-generated contract reviewed – or better, have one drafted from scratch. Otherwise, you risk having an invalid or unenforceable contract that fails when you need it most.