SMART CONTRACTS: A NEW FORM OF CONTRACT IN MODERN DAY

Abstract

Smart contract as a new form of contract is recognized to provide speedy and efficient transactions. Eliminating textual ambiguities, cumbersome contractual terms, enables negotiations, verify terms and automatically enforce tempered-free contractual terms without the need for intermediaries. In traditional contract, contractual terms are written in formal language which are quite cumbersome, the process of concluding transactions is slow and requires the intervention of lawyers, banks, registry departments and the courts. Many jurisdictions including Nigeria are still carrying out contractual transactions relying solely on traditional contract despite advancement in technologies including Blockchain technology, Ethereum and use of cryptocurrencies like Bitcoin and others as medium of exchange in online transactions. Using a qualitative doctrinal legal research method, this research gathered online sources and examined the legality of smart contract and Blockchain technology. While highlighting the importance of using smart contract in business transaction in Nigeria. The research adds to ongoing discuss on smart contracts and Blockchain technology. Suggesting the need for a shift from purely traditional contracts in Nigeria, to adoption of smart contracts to ease both domestic and trans-jurisdictional transactions mostly concluded online. However, there is a need for a robust framework for smart contract in Nigeria just like the E-SIGN Act and the UETA in the United States and other similar legislations that have been developed in other countries across the world.