The Legal Nature of Smart Contracts in a Perspective of Jordanian Civil Legislation

Abstract

This legal research explores the jurisprudential aspects of smart contracts in the context of Jordanian civil legislation. Smart contracts, which are digital programs based on blockchain technology, have emerged as a disruptive force with the potential to revolutionize traditional contractual relations. They autonomously execute binding agreements by adhering to pre-programmed instructions when specific conditions are met, thereby obviating the need for intermediaries. The growing global prominence of smart contracts makes their compatibility with and implications for the legal framework in Jordan an imperative subject of inquiry. Nevertheless, the integration of smart contracts into the existing legal framework presents distinctive challenges, especially within the milieu of Jordanian civil legislation. This research paper aims to conduct a comprehensive analysis of the stance of Jordanian civil legislation regarding smart contracts. By evaluating the compatibility between smart contracts and prevailing legal structures and an exploration of potential ramifications, this study contributes to the discussion concerning the convergence of technological innovation and legal frameworks within the Jordanian context. To achieve this goal, the study utilizes a descriptive, inductive, and analytical approach. The study concluded that the implementation of smart contracts presents legal challenges related to confirming digital mutual consent, aligning legal definitions with blockchain assets, and addressing enforceability concerns associated with self-execution. However, the study puts forth a range of recommendations, with the most significant being the development of mechanisms within smart contracts to confirm the mutual consent of contracting parties through the use of digital identity verification tools and electronic signatures.