Smart Legal Contract

A Smart Legal Contract is a legal contract that automatically enforces or executes specific terms and conditions using computer protocols.

• Context:
  • It is (often) a machine-readable document.
  • ...
• Example(s):
  • Automated Payment Agreement,
  • Self-Executing Lease,
  • Decentralized Trade Execution,
  • ...
• Counter-Example(s):
  • Traditional Paper Contract,
  • Non-binding MOU,
  • Oral Agreement.
• See: Legal Contract, Smart Contract, Distributed Ledger, Blockchain Technology, Contract Law, Decentralized Autonomous Organization (DAO).

---

---

References

2023a

• (GM-RKB ChatGPT, 2023) ⇒ Summarize the concept Smart Legal Contract in 1- 2 paragraphs, promt.GM-RKB ChatGPT (model: gpt-4-1106-preview) Retrieved: 2023-12-24.
  • QUOTE: A Smart Legal Contract (also known colloquially as a smart contract when it involves legal proceedings) is a computer protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract. Smart Legal Contracts combine traditional legal contracts with blockchain-based executable code, enabling automatic execution of certain terms and conditions when predetermined criteria are met, without the need for intermediaries.

    Unlike traditional contracts, which require human intervention for enforcement, Smart Legal Contracts are self-executing and self-enforcing. They are designed to be tamper-proof and transparent, reducing the potential for disputes and the need for costly litigation. While they offer significant benefits in terms of efficiency and security, their legal status can vary depending on jurisdiction, and they must be crafted in a way that aligns with existing legal frameworks to be recognized as legally binding. The integration of blockchain technology ensures the integrity of the contract, as the terms are recorded in a decentralized and immutable ledger.

2023b

• (Wikipedia, 2023) ⇒ https://en.wikipedia.org/wiki/Distributed_ledger_technology_law Retrieved:2023-8-21.
  • Distributed ledger technology law ("DLT law") (also called blockchain law, Lex Cryptographia or algorithmic legal order ) is not yet defined and recognized but an emerging field of law due to the recent dissemination of distributed ledger technology application in business and governance environment. Smart contracts, which are also enforceable legal contracts and were created through interaction of lawyers and developers, are called smart legal contracts.

2023c

• (Wikipedia, 2023) ⇒ https://en.wikipedia.org/wiki/Smart_contract Retrieved:2023-8-21.
  • ... A smart contract should not be confused with a smart legal contract, which refers to a traditional, natural-language, legally-binding agreement that has selected terms expressed and implemented in machine-readable code.

---