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Legal Smart Contracts

Executive Summary

This research explores the intersection of legal frameworks and blockchain-based smart contracts, analyzing their validity, enforceability, and regulatory implications across multiple jurisdictions. The paper establishes clear criteria for when a smart contract can be recognized as legally binding, offering a pioneering framework that bridges the gap between traditional contract law and emerging blockchain technologies.

Context

Published in 2014, "A Lawyer's Introduction to Smart Contracts" emerged at a critical juncture in blockchain adoption when legal frameworks were struggling to address the novel concept of automated, code-based agreements.

As blockchain technology was gaining traction beyond cryptocurrency applications, there was significant uncertainty about how traditional contract law principles would apply to these new forms of digital agreements. Furthermore, Ethereum had yet to launch--it was at its Beta stage at the time.

The research addresses key questions including whether code can constitute a legally binding agreement, what constitutes valid consent in automated systems, how jurisdictional issues are resolved in decentralized networks, and what remedies are available when smart contracts malfunction or produce unintended outcomes.

Impact

This research has had far-reaching impact in both legal and technological domains:

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    ETLA Report No. 68.

    View Resource

  • Legerén-Molina, A. (2018). Los contratos inteligentes en España (La disciplina de los smart contracts)/Smart contracts in Spain; the regulation of smart contracts.

    Revista de Derecho civil, 5(2), 193-241.

  • Lauslahti, K., Mattila, J., Hukkinen, T., & Seppälä, T. (2018). Expanding the platform: smart contracts as boundary resources.

    Collaborative value co-creation in the platform economy, 65-90.

  • Tönnissen, S., & Teuteberg, F. (2018). Towards a taxonomy for smart contracts.

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  • Durovic, M., & Janssen, A. (2018). The formation of blockchain-based smart contracts in the light of contract law.

    European Review of Private Law, 26.

  • Pereira, J. C. (2019). The genesis of the revolution in contract law: Smart legal contracts.

    In Proceedings of the 12th International Conference on Theory and Practice of Electronic Governance (pp. 374-377).

  • Parkhomenko, M., Pustovit, J., Ivanenko, D., Denisov, A., & Voinarivskyi, M. (2019). Digital law and electronic ethics in the formation of society 4.0.

    J. Legal Ethical & Regul. Isses, 22, 1.

  • Naser, M., & Sadeghi, H. (2019). Validation and expression of legal challenges in the application of smart contracts: Comparative study in the Iranian and American legal system.

    Private Law Research, 7(27), 225-288.

  • Magalhães, F. D. A. M. (2019). Smart Contracts: O jurista como programador.

    Master's thesis, Universidade do Porto (Portugal).

  • Durovic, M., & Janssen, A. (2019). Formation of smart contracts under contract law.

    In The Cambridge Handbook of Smart Contracts, Blockchain Technology and Digital Platforms.

  • O'Shields, R., Naser, M., & Sadeghi, H. (2019). Smart contracts: Legal agreements for the blockchain.

    Journal of Legal Research, 18(37), 261-288.

  • Drummer, D., & Neumann, D. (2020). Is code law? Current legal and technical adoption issues and remedies for blockchain-enabled smart contracts.

    Journal of information technology, 35(4), 337-360.

  • Almonacid Sierra, J. J., & Coronel Ávila, Y. (2020). Aplicabilidad de la inteligencia artificial y la tecnología blockchain en el derecho contractual privado.

    Revista de Derecho Privado, (38), 119-142.

  • Fetsyak, I. (2020). Contratos inteligentes: análisis jurídico desde el marco legal español.

    Revista electrónica de Derecho de la Universidad de La Rioja, REDUR, (18), 197-236.

  • Naser, M., & Taj, S. A. A. (2020). Results, Works and Presentation of a Technological Model to Solve the Challenges of Information Asymmetry in Industrial Property Insurance.

    Commercial Surveys, 18(101), 45-62.

  • Bruneault, F., Bollon, M. F., & Damous, L. B. (2020). Comment connaître la norme légale face à la gouvernementalité algorithmique? Enjeux épistémologiques et ontologiques des innovations technologiques juridiques.

    Global Media Journal: Canadian Edition, 12(1).

  • Uster, J. L. D. (2020). Contratos inteligentes (smart contracts): possibilidade e desafios no ordenamento jurídico brasileiro.

  • de Souza Mello, G. M. (2020). Smart legal Contracts: Einsatzmöglichkeiten im recht und rechtliche Rahmenbedingungen.

    Revista da Faculdade de Direito, Universidade de São Paulo, 115, 751-775.

  • D'Agostino, L. (2020). La criminalità economica nell’era della blockchain: modelli di responsabilità penale e nuove esigenze di tutela.

  • Rab, A. (2020). Smart contracts & blockchain: The panacea to the unequal bargaining power of consumers?

    International Journal on Consumer Law and Practice, 8.

    View Resource

  • García, E. R. (2021). Reflexiones sobre el contrato inteligente.

    Derecho comercial: Cuestiones actuales y debates, 89.

  • García, A. C. (2021). Conceptualización de los contratos inteligentes o autoejecutables basados en la tecnología blockchain y su encuadre en el ordenamiento jurídico español.

    Revista Estudios Jurídicos. Segunda Época, (21), e6756-e6756.

  • Mora Astaburuaga, A. (2021). “Smart Contracts”. Reflexiones sobre su concepto, naturaleza y problemática en el derecho contractual.

    RDUNED. Revista de derecho UNED, 27, 57-98.

  • Nava González, W., & Morales Rocha, V. M. (2021). Cumplimiento y ejecución de los acuerdos de transacción derivados de la mediación internacional a través de los contratos inteligentes.

    Revista chilena de derecho y tecnología, 10(1), 179-200.

  • DOMAZET, S. (2021). PROTECTION OF PERSONAL DATA ON THE EXAMPLE OF SMART CONTRACTS.

    In The Twelfth International Conference on Business Information Security (p. 37).

  • Janssen, A. (2021). Smart contracting and the new digital directives: Some initial thoughts.

    JIPITEC, 12(3), 196-204.

  • Law Commission (UK) (2021). Smart legal contracts: Responses to call for evidence.

    Law Commission Report.

  • Pranata, A. R., & Tehrani, P. M. (2022). The legality of smart contracts in a decentralized autonomous organization (DAO).

    In Regulatory Aspects of Artificial Intelligence on Blockchain (pp. 112-131). IGI Global.

  • LAS INDUSTRIAS, C. Y. C. (2022). EMERGENTES.

  • Avila Garzon, T. D. P. (2022). La implementación de los Smart Contracts en el ordenamiento mercantil en Colombia.

  • Bui, L. T. L., & Pribula, L. (2023). Using Fintech to protect the strict compliance principle in letter-of-credit law.

    Hungarian Journal of Legal Studies, 63(4), 374-398.

  • Quiroz Ruiz, A. I. (2023). Blockchain: un desafío legal.

  • Montero García, J. (2023). Smart contracts: análisis de la contratación inteligente a través de tecnología Blockchain, limitaciones y posibles aplicaciones en el Derecho Mercantil.

  • Cáceres Malagón, J. A. (2024). ¿ Sueñan las máquinas con contratar? Un estudio sobre smart contracts y consentimiento algorítmico.

    Revista de derecho Privado, (46), 155-185.

  • van Eck, M., & Agbeko, F. (2024). The Recognition and Regulation of Smart Contracts in South Africa.

    Potchefstroom Electronic Law Journal (PELJ), 27(1), 1-24.

  • Habiba, S., & Khosravi, H. (2024). Feasibility of Applying.

    Private Law, 20(2), 181-194.

  • Martínez Boada, J. (2024). Cuestiones jurídicas generadas por los smart contracts en el comercio electrónico B2C: foro, jurisdicción aplicable y derecho de desistimiento dentro del ordenamiento jurídico español.

    Revista de Derecho (Universidad Católica Dámaso A. Larrañaga, Facultad de Derecho), (30).

  • Lamy, G. L. H. (2024). APLICABILIDADE DOS SMART CONTRACTS EM RELAÇÕES CONSUMERISTAS: ESCROW ACCOUNT COMO MODALIDADE PRECURSORA.

    Direito contemporâneo: novos olhares e propostas–Volume 3.

  • Abou El Farag, M. S., Rashed, T. G., & Qatami, A. (2025). Developing a legal framework for electronic contracts in the context of traditional contract theory: An analytical study.

    Access to Justice in Eastern Europe, 8(1), 1-27.

    View Resource

The paper's enduring relevance stems from its focus on fundamental legal principles rather than specific implementations, allowing it to remain applicable even as smart contract technology continues to evolve.

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A Lawyer's Introduction to Smart Contracts (2014)

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