The increasing use of AI in contract formation challenges EU private-law principles like those of consent, attribution, and liability. Existing efforts like UNCITRAL’s Model Law, the ELI Guiding Principles, and the EU AI Act, address aspects of algorithmic contracting but remain fragmented. This article argues for a hybrid EU model: de iure condito, recognise AI-generated contracts via functional equivalence; de iure condendo, adopt a differentiated liability regime allocating responsibility between deployer and developer. It also calls for mandatory transparency and human oversight to secure accountability and trust. Integrating international and European initiatives, the framework enhances legal certainty, supports innovation, and protects contracting parties in the digital market.