1 ctc6, educational session 603 artificial intelligence in the legal environment a legal reasoning...

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CTC6, Educational Session 603Artificial Intelligence in the Legal Environment

A Legal Reasoning System on the Contract Law (CISG)

Hajime YOSHINO Professor of Law Meiji Gakuin University Faculty of Law 1-2-37 Shirokanedai, 108-8636 Tokyo [email protected] http://www.meijigakuin.ac.jp/~yoshino

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Contents 1. Introduction 2. Case, query and solution 3. What is Logical Jurisprudence 4. Basic legal sentence concepts and

structures 5. Logical structure of contract law

regulating changes of legal relations 6.Legal reasoning system on CISG,

LES-5 7. Conclusion

Hajime Yoshino:

Object of this paperProblem (Case, query and solution) and Jurisprudence for itNecessity of Sound and Efficient JurisprudenceDevelopment of Logical Jurisprudence

Hajime Yoshino:

Object of this paperProblem (Case, query and solution) and Jurisprudence for itNecessity of Sound and Efficient JurisprudenceDevelopment of Logical Jurisprudence

Hajime Yoshino:

Birth and Development of Logical Jurisprudence(LJ as a front for science of law)LJ as a applied logic to law(LJ as a realistic theory of law)the concept of law in LJPrimitives of LJLegal Reasoning in terms of LJ

Hajime Yoshino:

Birth and Development of Logical Jurisprudence(LJ as a front for science of law)LJ as a applied logic to law(LJ as a realistic theory of law)the concept of law in LJPrimitives of LJLegal Reasoning in terms of LJ

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1. Introduction What is a legal reasoning system

Hajime Yoshino:try to show what kind of logical structure legal knowledge has in order that a lawyer deduces such resolutions as results of legal reasoning. This study presents such a model based on Logical Jurisprudence, in which the relationship between legal sentences and legal meta sentences that regulate the validity of the former plays a definitive role. The model is applied to the United Nations Convention on Contracts for the International Sale of Goods (CISG) to develop a deductive knowledge base system. The deductive structure of the contract law is clarified so that appropriate answers can be deduced to questions about the legal state of affairs at any time point as a result of the application of CISG provisions to a concrete case.

It is necessary for the science of law as well as AI in Lawfrom which a legal judgement can be justified as a conclusion of logical deduction together with relevant facts. As the legal state of affairs changes according to the time progress of an event, a clarified logical model of law is necessary to enable us to deduce the changes among legal relationships over time from the beginning to the end of a case.

Hajime Yoshino:try to show what kind of logical structure legal knowledge has in order that a lawyer deduces such resolutions as results of legal reasoning. This study presents such a model based on Logical Jurisprudence, in which the relationship between legal sentences and legal meta sentences that regulate the validity of the former plays a definitive role. The model is applied to the United Nations Convention on Contracts for the International Sale of Goods (CISG) to develop a deductive knowledge base system. The deductive structure of the contract law is clarified so that appropriate answers can be deduced to questions about the legal state of affairs at any time point as a result of the application of CISG provisions to a concrete case.

It is necessary for the science of law as well as AI in Lawfrom which a legal judgement can be justified as a conclusion of logical deduction together with relevant facts. As the legal state of affairs changes according to the time progress of an event, a clarified logical model of law is necessary to enable us to deduce the changes among legal relationships over time from the beginning to the end of a case.

yoshino:This paper presents at first a hypothetical legal problem, queries on it and the resolutions. It shows then what LJ is and it introduces basic concepts of legal sentences according which LJ enables us to constitute a logical system of law. On this basic model, this paper clarifies the logical structure of law focusing on contract law which regulates change in legal relations. This paper refers to LES5 as a realization of legal reasoning develop by us on the basis of LJ. It concludes suggesting further possibilities of LJ.

yoshino:This paper presents at first a hypothetical legal problem, queries on it and the resolutions. It shows then what LJ is and it introduces basic concepts of legal sentences according which LJ enables us to constitute a logical system of law. On this basic model, this paper clarifies the logical structure of law focusing on contract law which regulates change in legal relations. This paper refers to LES5 as a realization of legal reasoning develop by us on the basis of LJ. It concludes suggesting further possibilities of LJ.

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Tasks of Judges and AI in Law

It is important task for a judge to decide what legal judgment should be made for a given case and to show how the judgment is justified.

A legal reasoning system as an artificial intelligence of law, which infers the legal state of affairs as conclusion from law and the facts of a case and shows clearly the deduction process, will be, therefore, a useful tool for the practice of judges.

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Several approaches to legal reasoning system

• 1 rule based legal reasoning system• British Nationality Act (Kowalski & Sergot),• LES-2, LES-3 (Yoshino)

• 2 case based legal reasoning system• HYPO(Ashley),• GREBE(Branting)

• 3 hybrid reasoning system• CABARET(Rissland & Skalak)

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Limitations of the approaches

• Partial, narrow, separated legal subjects

• The whole deductive system of law is unclear

• The changes of legal relations in terms of time progress have not been enough clearly formalized

• Lack of legal theoretical basis

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What is necessary to construct correct Legal Reasoning systems

In order to construct legal reasoning system it is necessary first to clarify the logical structure of the law system as a whole.

The legal state of affairs, which refers to the status of legal relations, changes according to the chronological progress of an event over time. We therefore must clarify such a logical model of law that enables us to deduce changes of legal relation according to time, regardless of any time point in given events from the beginning to the end.

The systematization of law, i.e., to present the law as a deductive system, has long been a central theme of legal theories, but previous studies did not succeed in presenting a legal system as deductive.

We need a sound and powerful logical theory of law.

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The objectives of this paper

Logical Jurisprudence has succeeded in clarifying the logical structure of the law system in the above sense and on its basis we have developed a legal reasoning system entailing knowledge base of the CISG (United Nations Convention on Contracts of the International Sale of Goods).

Our aim here is to present the essence of the clarification of the logical structure of contract law system by focusing on the CISG.

In this paper I would like to introduce you what is Logical Jurisprudence, how the structure of contract law is to be clarified, what structure it has and how we developed LES-5, a legal reasoning system of CISG and How it works in fact in demonstration.

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Contents 1. Introduction 2. Case, query and solution 3. What Is Logical Jurisprudence 4. Basic legal sentence concepts and

structures 5. Logical structure of contract law regulating

changes in legal relations 6.Legal reasoning system on CISG, LES-5 7.Conclusion

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2. Case, query and solution Case 8f

( 1) On April 3rd, 1997 A (Anzai), a farming machine maker in New York, sent a letter to the branch office in Hamburg of B (Bernard), a Japanese trading company. The content of the letter was: A sells B a set of agricultural machines which is composed of a tractor and a rake and the price of the tractor is $50000; A delivers the machine to B by May 10th, B must pays the price of the system to A by May 20th and the agricultural machinery will be carried by an American freight vessel.

( 2) On April 8th, the letter reached the letter box of B’s branch office in Hamburg.

( 3) On April 9th, B made a telephone call to A. “I accept your offer. However, I want you to carry the machine by a Japanese containership”

( 4) On May 1st, A delivered the farming machine to a Japanese container ship at the port of New York.

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( 5) On May 31, the machine was delivered to the branch office in Hamburg.

( 6) On June 5th, B examined the machine. ( 7) On May, 10th B paid the price to A. ( 8) On August 10th, the machine proved to be operating out of order because of a bad connection gear. B immediately gave the notice to A specifying the nature of the lack of conformity.

( 9) On September 1st, B asked A to repair the lack of conformity of the machine within one month. A did not repair the non-conformity until 1 October.

( 10) On October 10th, B declared the avoidance of the contract.

( 11) On December 10th, A recovered the damage and B restituted the machine delivered by A.

( 12) On December 20, A restituted the price paid by B.

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Queries

At each of the points of time indicated below, what is the legal relation that exists between A and B?

1: April 5th 2: April 15th 3: May 5th 4: August 15th 5: September 15th 6: October 5th 7: November 15th 8: December 15th 9: December 25th

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CISG Articles The following articles of the CISG apply to the case: Article 15(1) An offer becomes effective when it reaches the

offeree. (2) An offer, even if it is irrevocable, may be withdrawn if

the withdrawal reaches the offeree before or at the same time as the offer.Article 16(1) Until a contract is concluded an offer may be revoked if the revocation reaches the offeree before he has dispatched an acceptance.

Article 18(2) An acceptance of an offer becomes effective at the moment the indication of assent reaches the offeror. … .

Article 23 A contract is concluded at the moment when an acceptance of an

offer becomes effective in accordance with the provisions of this Convention.

Article 31 If the seller is not bound to deliver the goods at any other

particular place, his obligation to deliver consists: (a) if the contract of sale involves carriage of the goods - in

handing the goods over to the first carrier for transmission to the buyer;

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Article 38 (1) The buyer must examine the goods, or cause them to be

examined, within as short a period as is practicable in the circumstances.

Article 39 (1) The buyer loses the right to rely on a lack of

conformity of the goods if he does not give notice to the seller specifying the nature of the lack of conformity within a reasonable time after he has discovered it or ought to have discovered it.

Article 45 (1) If the seller fails to perform any of his obligations

under the contract or this Convention, the buyer may: (a) exercise the rights provided in articles 46 to 52; (b) claim damages as provided in articles 74 to 77. (2) The buyer is not deprived of any right he may have to

claim damages by exercising his right to other remedies.

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Article 46 (1) The buyer may require performance by the seller of his

obligations unless the buyer has resorted to a remedy which is inconsistent with this requirement.

(2) If the goods do not conform with the contract, the buyer may require delivery of substitute goods only if the lack of conformity constitutes a fundamental breach of contract and a request for substitute goods is made either in conjunction with notice given under article 39 or within a reasonable time thereafter.

(3) If the goods do not conform with the contract, the buyer may require the seller to remedy the lack of conformity by repair, unless this is unreasonable having regard to all the circumstances. A request for repair must be made either in conjunction with notice given under article 39 or within a reasonable time thereafter.

Article 49 (1) The buyer may declare the contract avoided: (a) if the failure by the seller to perform any of his

obligations under the contract or this Convention amounts to a fundamental breach of contract; or

(b) in case of non-delivery, if the seller does not deliver the goods within the additional period of time fixed by the buyer in accordance with paragraph (1) of article 47 or declares that he will not deliver within the period so fixed.

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Solutions 1) On April 5th, there is no legal relation between the seller A

(Anzai) and the buyer B (Bernard) 2) On April 15th, A has a duty to deliver the farming machine to B by

May 10th and B has a duty to pay the price $50,000 to A by May 20th, while B has right to require A to deliver the goods to B and A has the right to require B to pay the price to A by May 10th.

3) On May 5th, B has a duty to pay the price $50000 to A by 20 May, while A has right to require B to pat the price to A by 10 May.

4) On August 15th, A has a duty to recover the damage, while B has right to claim A the damage and B has right to require A to repair the machine.

5) On September 15th, A has a duty to recover the damage and a duty to repair the machine, while B has right to claim A the damage and B has the right to require A to repair the machine which is restricted to exercise.

6) On October 5th, A has a duty to recover the damage and a duty to repair the machine, while B has right to claim A the damage, B has right to require A to repair the machine and B has a right to declare the contract avoided.

7) On November 15th, A has a duty to recover the damage and a duty to restitute the price paid by B, and B has a duty to restitute the machine delivered by A, while B has a right to claim A the damage and a right to require A to restitute the price, and A has right to require B to restitute the machine.

8) On December 15th, A has a duty to restitute the price paid by B, while B has right to require A to restitute the price.

9) On December 25th, there is not legal relation between A and B on the contract.

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Changes of legal Relationships (Fig. 3a)

５月10日までに

引渡す義務がある

15４／

５／５

Seller・Ａ

A has aduty todeliverthe goods

B has aduty topay theprice toA by

May 10.

B mayrequireA to

deliverthegoods

Buyer・ＢＢＡ

Events＜＞ Validity of Legal Sentence＜＞ Query＜＞ Answer＜＞

query(2)

query(3)

Offer iseffective

query(1)

４／５

Offer be-comes valid

B pays the price

The goods is delivered to B

B examines the goods

A has a duty todeliverthe goodswhich conformsto the contract

A mayrequire

B to paythepricebyMay10th.

Accept. be-comes validContract becomes valid

Offer reaches to B

Acceptance reaches to A

hands over the Ａgoods to the first carrier Japanese Container Ship

duty to deli-ver the goods

There is nolegal relation

right to require todeliver the goods

right to requireto pay the price

duty ot paythe pride

duty to paythe price

right to paythe price

４／８

４／９

５／１

10５／

31５／

６／５

Figure 3: The Changes of Legal Relation

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A has a duty todeliver

the goodswhich

conformsto the contract

15９／

10／５

The additional period expired.

right to reqire to repair

right to claim damage


right to require to repair

( restricted )

right to requireto repairB may

declare the

contract avoided.

The right to claim

to repair is

restricted.

Exercise of claim to repair.

B may require A to repair

the machine.

query(4)

query(5)

query(6) right to claim

damage

right to declaincontract avoided

B declared the contract avoided.

claim to restituteA the machiner

11 15／ query(7)



claim to restituteB the price

12 25／

query(8)

query(9)

９／１

8 10／

９／１

10／１

10 10／

12 10／

12 20／

12 15／

15８／

A has a duty to recover the damage for B.

B has a duty to

repair the machine.

B may claim A the the damage.

The machine is operatingout of order

B noticed to A specifyingthe nature of the lack of

conformity

B asked A to repair the machine within one month.

A restituted theprice paid by B.

A recovered the damge.B restituted the machine.

duty to reco-ver the damage

duty to repairthe machine




duty to resti-tute the price


duty to resti-tute machine



B mayrequire Ato repair

the machine

B has a duty to

restitute A the

machine.

B mayclaim A

torestitutethe pricepaid by B

A may claim B to

restitute the

machine delivered

by A.

A hasa duty torestitute

Bthe pricepaid by B

Exerise of right to declare contract avoided

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3. What Is Logical Jurisprudence 　 (LJ)

Concept of logical jurisprudence• Logishe Rechts Lehre• A developed form of “legal logic”

(Juristische Logik) • Naming is done by Hajime Yoshino.

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primitives:

“sentence,”　• LJ consider that norm as a meaning does

not exist.• LJ starts from sentences.

“validity”　of　sentence• legal　validity　as　legal　truth

“inference　rule.”•Modus　Ponens:　（（ A　→ Ｂ）＆Ａ）→Ｂ

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Legal Reasoning as a development of legal sentences (Fig.1)

Statute

Legal Rule Sentences

Fact Sentence

Described Fact

Events

Legal Judgement Sentence

Set

Set

Set

Set

Purposeof Law

ConcreeteJutice

Go to and back of Glance

hard

soft

Legal Principle

Interpretation１(case; general opinion）

Common Sense ofLegal Concepts

Interpretation 1.1for a concrete case（）

Justification

Discovery

Confirmed fact

Legal Conclusioon

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Two types of legal Reasoning

Reasoning of legal justification•Modus　Ponens:　（（ A　→ Ｂ）＆Ａ）→Ｂ

Reasoning of legal discovery• Abduction and • induction• falsification 　： Modus Tollens: （ ( Ａ→

Ｂ）＆～Ｂ）→～Ａ

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Legal Reasoning Structure (Fig.1)

Statute

Legal Rule Sentences

Fact Sentence

Described Fact

Events

Legal Judgement Sentence

Set

Set

Set

Set

Purposeof Law

ConcreeteJutice

Go to and back of Glance

hard

soft

Legal Principle

Interpretation１(case; general opinion）

Common Sense ofLegal Concepts

Interpretation 1.1for a concrete case（）

Justification

Discovery

Confirmed fact

Legal Conclusioon

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4. Basic legal sentence concepts and structures

Legal rule and fact sentences Legal object and meta sentences Legal elementary and complex

sentences Existence of an obligation and the

validity of the legal object sentence (Fig.2)

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Legal elementary and complex sentences

Elementary legal sentence　• the　smallest　unit　of　legal　sentences.　• "one　must　drive　a　car　under　100　km　/hour　on　a　highway”　

• 　“A　may　require　B　to　pay　the　price　of　$10000.”

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Legal rule and fact sentences

　Legal rule sentences:　　• “∀X{a(X)　←　b(X)}”.　• legal　consequence　← legal　requirement• “∀X{become_effective(offer(X,A),T)　←　reach(offer(X,A),offeree(B,X),T)}”

Legal fact sentences:　• “b(x1)”.• reach(offer(o1,anzai),offeree(bernard,o1),4_05).

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Legal elementary and complex sentences

Elementary legal sentence　• the　smallest　unit　of　legal　sentences:　An　element　of　contract　or　statute

• "one　must　drive　a　car　under　100　km　/hour　on　a　

highway”　 Complex legal sentence

• a　sentence　named　for　a　group　of　legal　sentences• code,　contract,　a　section　of　statute,　an　article

• 　“the　United　Nations　Convention　on　Contracts　for　the　International　Sale　of　Goods,”　

• 　“a　contract　for　sale　of　a　farming　machine　between　A　and　B　on　October　8.　1997.”

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Legal object and meta sentences

A　legal object sentence　describes　obligations　of　a　person• 　“B　must　pay　A　the　price　of　$10000”　

　A　legal meta sentence　prescribes　about　legal　sentences　• It　describes　the　validity　of　a　legal　sentence.• 　“(1)　This　Convention　applies　to　contracts　of　sale　of　goods　between　parties　whose　places　of　business　are　in　different　States　:　(a)　when　the　States　are　Contracting　States;　or　…　”

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Obligation of persons as ultimate normative state of affairs

Law ultimately prescribes the obligation of persons. People’s conduct is ultimately regulated by

obligations given by object sentences.

What is that legal obligations exist ?

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Obligation and the validity of legal object sentence

Figure 2: The Existence of an Obligation and the validity of the object legal sentence

X is obliga-tory

Oligation Xturns up

Obligation Xis terminated

"X is obligatory" is valid

There is no obligation.

There is no obligation

No legal object sentenceis valid.

No legal object sentenceis valid.

events legal bject sentence legal meta sentence

Obligation X exists.

"X is ob-ligatory"is valid.

"Xi is obligatory"becomes valid

"Xi is obligatory"is terminated

event1

event2

t0

t1

T

t2

t3

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Contents 1. Introduction 2. Logical Jurisprudence 3. Basic legal sentence concepts and

structures 4. Case, query and solution 5. Logical structure of contract law

regulating changes in legal relations 6.Legal reasoning system on CISG, LES-5 7. Conclusion

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5. Logical structure of contract law regulating changes in

legal relations 5.1 Legal rule sentences deciding that

legal sentences are valid. 5.2 Logical structure of contract law

deciding accrual of obligation 5.3 Logical structure of contract law

deciding termination of obligations

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5.1 Legal rule sentences deciding that legal sentences are valid.

Fundamental legal meta rule sentence is valid to confirm that legal sentences are valid:

(0) A legal sentence S is valid at the time T ←

S becomes valid at time T1 before T ＆ S is not terminated until T

• The validity of this fundamental legal meta rule is described as a fact. Or it is presupposed that it is always valid.

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5.2 Logical structure of contract law deciding accrual of obligation

The accrual of validity of a complex legal sentence follows the accrual of validity of elementary legal sentences which belong to it.

(r01) become_valid(ES,G,T) <- element_complex_sentence(ES,CS)& become_valid(CS,G,T)

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15４／

５／５

Seller・Ａ



May 10.

B mayrequireA to

deliverthegoods

Buyer・ＢＢＡ


query(2)

query(3)

Offer iseffective

query(1)

４／５


B pays the price




A mayrequire



Offer reaches to B










４／８

４／９

５／１

10５／

31５／

６／５


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Fig. 4

Ｔ＝Ｔ１

Yes(true)

Yes(true)

Yes(true)

No(false)

No(false)

No(false)

No(false)

No(false)

Yes(true)

Figure 4: 3AA1B A contract becomes valid.

[3AA1BA] A contrac is concludedat time T1 before time T

[3AA1BD] Contract entailsa condition of the validity

[3AA1BE] The conditionis sutisfied at time T

[3AA1BC] The begning time has come at T

[3AA1BC] Contract entails the begning time

[3AA1BB] not(The contract is invalid at T）

[3AA1B] A contract S becomes valid at time

[~3AA1B]not(A contract S becomes valid at time)

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Fig.5

yes

yes

[2AB] An acceptance of the offerbecomes valid at time T.

no

no

[2A] A contract the content ofwhich S is concluded at time T.

[~2A] not(A contract the content ofwhich is S is concluded at time T)

[2AA] An offer of a contract thecontent which is S is valid at time

Figure 5: [2A]Contract is conluded

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5.2.2 The accrual of the validity of a legal object sentence by

exercising the right The accrual of validity of the elementary legal

sentence by itself can be regulated.

(3AA2) "A legal sentence 'X has an obligation to do Z' becomes valid at time T,

if a legal sentence 'Y has a right to require X to do Z' is valid, and Y exercises the right to require X to do Z at time T.”

(rCISG46): “The buyer has a right to require the seller to remedy the lack of conformity by repair” becomes valid,

if the goods do not conform with the contract.

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15９／

10／５






( restricted )


declare the

contract avoided.

The right to claim

to repair is

restricted.



the machine.

query(4)

query(5)


damage




11 15／ query(7)




query(8)

９／１

8 10／

９／１

10／１

10 10／

12 10／

12 15／

15８／


B has a duty to repair the machine.




conformity












the machine

B mayclaim A



Bthe pricepaid by B


Changes of legal Relationships (Fig. 3b’)

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5.3 Logical structure of contract law deciding termination of

obligations

The validity of elementary legal sentence is terminated if the complex legal sentence is terminated.

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15９／

10／５






( restricted )


declare the

contract avoided.

The right to claim

to repair is

restricted.



the machine.

query(4)

query(5)


damage




11 15／ query(7)




query(8)

９／１

8 10／

９／１

10／１

10 10／

12 10／

12 15／

15８／


B has a duty to repair the machine.




conformity












the machine

B mayclaim A



Bthe pricepaid by B


Changes of legal Relationships (Fig. 3b’)

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5.3 Logical structure of contract law deciding termination of

obligations

The validity of elementary legal object sentences is terminated when the obligation is fulfilled.

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15４／

５／５

Seller・Ａ



May 10.

B mayrequireA to

deliverthegoods

Buyer・ＢＢＡ


query(2)

query(3)

Offer iseffective

query(1)

４／５


B pays the price




A mayrequire



Offer reaches to B










４／８

４／９

５／１

10５／

31５／

６／５


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structures 4. Case, query and solution 5. Logical structure of contract law regulating

changes in legal relations 6.Legal reasoning system on CISG, LES-5 7. Conclusion

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6. Legal reasoning system on the CISG, LES5

The clarification of logical structure of the contract law is applied to construct a legal reasoning system on the CISG (LES5).

The relevant knowledge is written at first in the form of logical flow chart and the represented in CPF in Knowledge Base.

The inference system and explanation system is written in logic programming.

The system can deduce states of legal relationships at any time point of cases as results of the application of the CISG to concrete cases.

It can explain the reason of the deduction. The systematization of law in LES5 might prove the legitimacy

and powerfulness of LJ.

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Demonstration of LES-5

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structures 4. Case, query and solution 5. Logical structure of contract law regulating

changes in legal relations 6. Legal reasoning system on CISG, LES-5 7. Conclusion

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7. Conclusion A Legal reasoning system (LES) will be useful for

judges to get proposals of the solutions of cases and their justification.

Legal reasoning system needs a good, general theory of Law. LJ could afford the sound basis of LES.

LJ starts from three primitives: legal sentences, the validity and inference rules. It identifies the three sorts of legal sentences: rule and fact sentences, object and meta sentences, elementary and complex sentences.

On the basis of these conceptions, the basic structure of legal knowledge has been clarified.

By taking up the CISG as an example, the structure of contract law is thus clarified in terms of LJ.

The study results of knowledge clarification by LJ are put into computer and a legal reasoning system on CISG, LES5 has been developed.

As the basic deductive structure of law as a whole is clarified and a LES on CISG is made on the basis, we could go further to develop LES on various law fields and to integrate them in the future.

yoshino:

On these way of formalization, the change of legal relations is described as a change of the validity of legal object sentences that describes obligations.

On the formalization, the fundamental legal meta rule sentence is confirmed under which every other legal meta rules are systematized.

Thus I clarified the logical structure of contract law system which can deductively prove the change of the legal relation along with the progress of events.

yoshino:

On these way of formalization, the change of legal relations is described as a change of the validity of legal object sentences that describes obligations.

On the formalization, the fundamental legal meta rule sentence is confirmed under which every other legal meta rules are systematized.

Thus I clarified the logical structure of contract law system which can deductively prove the change of the legal relation along with the progress of events.

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I would conclude this lecture with most important words:

Thank you!

1 ctc6, educational session 603 artificial intelligence in the legal environment a legal reasoning...

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