CYBERCRIME, LEGAL ACCOUNTABILITY, AND CONTRACTUAL RISK: A SYSTEMATIC REVIEW OF JURISPRUDENCE AND PROTECTIVE FRAMEWORKS

Abstract

This systematic review investigates the evolving legal intersection between cybercrime and contractual liability, with a focus on how courts, regulators, and contracting parties address cybersecurity risks through enforceable legal frameworks. Drawing upon the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) methodology, a total of 87 peer-reviewed articles, case law commentaries, and legal-technical policy studies representing over 1,300 cumulative citations were rigorously analyzed to identify prevailing legal doctrines, risk mitigation practices, and enforcement trends. The review explores key thematic areas including the rise of cybersecurity-specific clauses in digital service agreements, the misalignment between cyber insurance policies and commercial contracts, the legal treatment of third-party vendor breaches, and the contractual implications of data protection regulations such as the GDPR, CCPA, and HIPAA. Findings reveal a clear doctrinal shift: courts are increasingly recognizing cybersecurity failures as breaches of contract, especially when they violate performance warranties or industry standards. Furthermore, vague or boilerplate clauses have proven ineffective during litigation, underscoring the importance of specificity and alignment with technical benchmarks such as NIST and ISO/IEC standards. The review also identifies a growing reliance on Data Processing Agreements (DPAs), Standard Contractual Clauses (SCCs), and enforceable indemnity and audit rights to manage legal risk in complex digital ecosystems. High-profile cases such as Merck v. ACE Insurance, Schrems II, and the British Airways GDPR enforcement illustrate how regulatory action and private litigation are catalyzing more rigorous contract drafting and cyber risk governance. Overall, the study concludes that in the face of rising transnational cyber threats, contractual instruments must evolve beyond static legal templates to become dynamic tools of compliance, risk transfer, and strategic cybersecurity management. This review offers both scholars and practitioners a synthesized, evidence-informed framework for understanding and improving the legal mechanisms that govern cyber contractual liability.