Contractual Dilemmas of Smart Contracts – Information Society Versus Contract Law

Abstract

The aim of this study is to examine the issues of inserting smart contracts into our operative contract law. In this context, I am examining the positive and negative effects of this technological achievement on contract law, as well as its potential dangers. Smart contracts, like traditional contracts, require the consensus of the parties at the time the contract is concluded. The only difference is that the performance of the contract in the case of a smart contract is completely independent of the parties. This attribute could lead to the potential outcome that the application of performance and breach of contract rules in the Hungarian Civil Code–and as well in other continental civil codes–, could become inapplicable due to the lack of possibility of breaching the contract.