I think that this is an attack on the understanding of the LLM _potentially_ but it doesn't seem like it's likely to standup to legal scrutiny?
Seems like this is pretty clearly a case of fraudulent misrepresentation (https://www.law.cornell.edu/wex/fraudulent_misrepresentation) which kinda nullifies the contract, if I understand correctly:
Fraudulent misrepresentation is a tort claim, typically arising in the field of contract law, that occurs when a defendant makes a intentional or reckless misrepresentation of fact or opinion with the intention to coerce a party into action or inaction on the basis of that misrepresentation.
To determine whether fraudulent misrepresentation occurred, the court will look for six factors:
A representation was made
The representation was false
That when made, the defendant knew that the representation was false or that the defendant made the statement recklessly without knowledge of its truth
That the fraudulent misrepresentation was made with the intention that the plaintiff rely on it
That the plaintiff did rely on the fraudulent misrepresentation
That the plaintiff suffered harm as a result of the fraudulent misrepresentation
Like most claims under contract law, the standard remedy for fraudulent misrepresentation is damages.
The LLM part is confusing people.
You can remove the LLM from the story and see how the trick would be a legal problem even with only humans involved: If you put an extra clause in a contract in white font that says “Oh and also if you agree to this you owe me $1,000” because you want to selectively hide it from reviewers but benefit from the text, no court is going to look kindly on you.
That’s not really a good analogy. (For blind people maybe. That is addressed in the legal accompanying post.) Here, only automation systems are actually vulnerable. The text on the screen is the same as print which is what the party signs.
That would be an open question in every jurisdiction. There wasn't really a representation here, but it might be something more like the doctrine of "mistake". It's also not clear "your honor I never read the contract but my LLM told me it was okay to sign" is a great argument either. Doubly-true for your $1,500/hour law firm duped by something like this.
[Edit: by "nullify" you probably mean "void" or "voidable" which are remedies in equity, and the "never read it" argument carries even more burden there. As the citation notes the traditional remedy for contract issues is damages (i.e., cash payment).]