Smart contracts, legal disputes and doctrine

What is it about?

The article seeks to identify the challenges and problems brought about by smart contracts utilising blockchain, or other related distributed ledger technology. Actions and agreements may be entered upon by parties and executed via such smart contracts. The latter, being governed by software protocols, may result in unwanted outcomes, often referred to as undesirable events. These problems may create conflicts between parties and often result in a party being disadvantaged. The article identifies a real case scenario which resulted in a lawsuit in Singapore, a common law jurisdiction. The First Court decision was taken to appeals stage. The outcome and court reasoning by the courts in Singapore is analysed and compared with civil law doctrine in the area of contractual law. Following such analysis, the article reaches a hypothetical outcome had the case been based in a civil law jurisdiction. Such an outcome may prove to be a possible way forward when courts are faced with similar cases. Conclusions are made as to the approach the legal systems should take in contractual matters which have their basis and execution conducted via blockchain-based smart contracts.

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Photo by Pierre Borthiry - Peiobty on Unsplash

Photo by Pierre Borthiry - Peiobty on Unsplash

Why is it important?

The case analyzed showcases a real-world judicial suit in Singapore, shedding light on the legal recognition of smart contracts, possible solutions, repercussions, and a discussion on the possible scenarios which would have resulted had the lawsuit has been filed and decided in a civil law jurisdiction.

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