Legal Protection Against Third Parties in Civil Agreements in The Era Of Contract Digitalization

Abstract

The era of contract digitization has brought a major transformation in the practice of civil agreements, ranging from the use of electronic signatures, digital contract platforms, to blockchain-based smart contracts. This change not only affects the parties directly involved in the agreement, but also creates new dynamics regarding legal standing and protection for third parties. This article aims to analyze the forms, limits, and mechanisms of legal protection against third parties in digital civil agreements by integrating normative, comparative, and conceptual approaches. A study was conducted on the Civil Code, the Electronic Information and Transaction Law, regulations related to electronic signatures, and literature on smart contracts and digital contracting platforms. The results of the study show that contract digitization expands the potential for third-party involvement, both as third-party beneficiaries, parties harmed by contract violations, and parties whose data is processed in the digital ecosystem. However, Indonesia's positive legal framework still places third-party protection limited to classical concepts, so it is not fully responsive to technological risks such as data leaks, automated enforcement, and algorithmic bias. This article offers a model of strengthening third-party legal protection based on the principles of digital prudence, algorithmic transparency, and a functional expansion of the principle of privity of contract. Thus, the digitization of contracts can still take place efficiently without neglecting the rights and interests of third parties in modern civil transactions.