Smart contracts offer a new solution for agreement formation and execution, but the contract is more than just the code.
Code-based, self-executing and self-enforcing smart contracts deliver streamlined processes and a potential reduction of overheads.
As these contracts are created from code, they are comparatively free of the costs, friction, reliance on intermediaries and enforcement uncertainty, all of which characterise traditional written contracts. However, smart contracts do not escape legal analysis.
The law around smart contracts is developing fast, and the UK Jurisdiction Taskforce LawTech Delivery Panel has produced a legal statement which clarifies the fundamental principles of English contract law and how they relate to smart contracts. This statement confirms that they can be enforceable under English law, providing a measure of clarity to businesses seeking to introduce technology-driven, automated contract-formation and execution solutions. The key word is “can”. Whether they are enforceable is a question of fact.
If you wish to introduce contract formation and execution automation in your business or if you are developing a product that delivers this solution to others, it is vital to ensure that the executed outcome is enforceable and legally robust. It is therefore key to seek expert legal advice.
We offer the tech guidance you need to implement or develop robust, smart contract solutions, which create binding legal obligations, enforceable in accordance to their terms, letting you achieve your desired commercial outcome.
