Smart contracts and the legal system

Abstract

A legal foundation to smart contracts is essential if smart contracts are to become mainstream. Investors will need to be able to be able to invoke legal remedies in appropriate circumstances so as to avoid foul play and ensure a dependable market. The smart contract also has the potential for built-in dispute resolution. The Delivery Panel&s;s findings were that confidence in smart contracts&s; legal position can be grown through legal developments and increasing standardisation. Smart contracts have been described as the "ultimate automation of trust". Trust is informed by a wide range of factors and derived from a variety of different sources. The moves towards standardisation in smart contracts emphasis the importance of how they are written, how they are enforced and how to ensure that the automated performance of a smart contract is faithful to the meaning of any relevant contractual documentation.