Source: Medium

The article explores how artificial intelligence is reshaping contract law in Nigeria, examining the benefits and challenges of AI-generated agreements. Legal experts are increasingly debating whether contracts drafted by AI tools hold the same enforceability as traditional contracts written by human lawyers. AI-powered contract drafting is becoming more common in Nigerian legal practice, particularly in corporate transactions and commercial agreements. AI tools allow businesses to generate standardized contracts quickly, ensuring efficiency and reducing legal costs. However, concerns arise about whether these contracts fully comply with Nigerian contract law, particularly regarding legal intent, liability, and enforceability.

A major issue is the question of responsibility when AI-generated contracts contain errors or ambiguities. In cases of contractual disputes, it is unclear whether liability falls on the AI developers, the users of AI tools, or both. Nigerian courts have yet to establish clear legal precedents on the matter, leaving many businesses uncertain about the risks of using AI-generated agreements. Another challenge is the lack of transparency in AI contract generation. Many AI tools function as black-box systems, meaning that users may not fully understand how the AI selects specific clauses or structures legal language. This raises concerns about whether AI-generated contracts can be challenged or amended effectively.

The article also discusses the role of AI in smart contracts, which are self-executing agreements powered by blockchain technology. While smart contracts offer efficiency and automation, they also present new legal challenges, such as determining jurisdiction and handling unforeseen contractual breaches. Nigerian regulators are closely monitoring these developments, with some legal professionals calling for updates to contract laws to accommodate AI-driven agreements. The article concludes that while AI can streamline contract drafting and improve efficiency in legal transactions, businesses and legal professionals must exercise caution, ensuring that AI-generated contracts align with Nigerian legal principles and regulatory frameworks.