The Legality and Effectiveness of Smart Contracts, As Well As Its Impact on Traditional Concepts of Contract Law
Karwan Dhahir Saber1 and Rebin Ali Mohammed Ameen2
1Business and Management Department, Faculty of Administrative Sciences and Economics
Tishk International University, Erbil, Kurdistan Region, Iraq
2Director-General of Administrative and Financial Affairs,
Ministry of Natural Resources, Erbil, Iraq
Correspondence: [email protected] – [email protected]
Received: June 22, 2022 | Revised: September 05, 2022 | Published: September 20, 2022
Abstract
Although in the world of law, smart contracts are still a new concept, they have already given rise to many possibilities. common examinations of smart contracts, a modern innovation aimed at displacing traditional contract law. Some claim that smart contracts will completely replace traditional contracts while others claim that they will spell the end of contract law. This research investigates the role of “Smart Contracts,” a recently invented technology. What sets them apart is the use of computers to automate the execution of these legal agreements. This article further examines how smart contracts differ from traditional contracts from a legal aspect. It also explains the differences between strong and weak smart contracts, as well as how smart contracts work and fit into current contract law about revocation and modification. Since Smart Contracts are merely a new proactive self-help that politicians and judges should not restrict.
While some extreme examples of strong smart contracts may require regulation, courts and legislators should foster an environment in which smart contracts are considered separate types of contracts. As a result, a technique has been devised for dealing with any concerns that may arise because of the Smart Contract. For legal purposes, researchers distinguish between traditional contracts and smart contracts based on their strong and weak smart contracts. The study relied on an examination of already published information as well as any related papers obtained from public libraries, websites, and data from previously completed surveys, among other sources. Finally, based on comparative research, the study came to some plausible findings about the legality of Smart Contracts and made some recommendations.
Keywords: Smart Contract, Legality, Technology, Development, Traditional Contract
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DOI: https://doi.org/10.23918/ejmss.V3i2p14
Citation
Saber, K. D., & Ameen, R. A (2022). The Legality and Effectiveness of Smart Contracts, as well as its impact on Traditional Concepts of Contract Law. Eurasian Journal of Management & Social Sciences, 3(2), 14-25. https://doi.org/10.23918/ejmss.V3i2p14
© Saber, K. D., & Ameen, R. A, Published by EJMSS. This article is published under the Attribution-NonCommercial 2.0 Generic (CC BY-NC 2.0) license. Anyone may copy and redistribute the material in any medium or format, subject to full attribution to the original publication and authors. The full terms of this license may be seen at https://creativecommons.org/licenses/by-nc/2.0/
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