Challenges to Contract Certainty and Dispute Resolution in the Digital Economy

Abstract

The rapid development of the digital economy has transformed traditional contract formation and dispute resolution processes, creating both opportunities and challenges for legal certainty. In online transactions, the absence of physical presence, cross-border interactions, and reliance on automated systems complicate the determination of valid consent, evidence authenticity, and jurisdiction. This paper aims to examine the challenges to achieving contract certainty and effective dispute resolution in digital commerce, focusing on how digitalization affects contractual obligations, enforcement mechanisms, and consumer protection. Using a qualitative normative legal research method, this study analyzes legal frameworks, scholarly literature, and case precedents concerning electronic contracts and online dispute resolution (ODR). The findings indicate that ambiguity in digital contract terms, lack of uniform international standards, and limited consumer awareness remain major barriers to legal certainty. Furthermore, while ODR platforms offer efficiency and accessibility, they still face issues regarding data integrity, fairness, and enforcement of decisions across jurisdictions. The study concludes that strengthening digital signature legislation, harmonizing cross-border e-commerce regulations, and integrating artificial intelligence into dispute management systems can enhance contractual reliability and fairness. Practically, this research implies that policymakers and technology providers must collaborate to establish transparent and interoperable digital legal infrastructures that balance innovation with legal accountability.