SMART CONTRACTS & LEGAL VALIDITY IN INDIA: A TICKING TIME BOMB FOR TRADITIONAL AGREEMENTS!

Abstract

The arrival of contracts which are smart has brought a pattern shift in the way agreements are carried off in terms of their performance as well as their implementation. Basically, the smart contracts run on a block chain type of codes, which means that they can also be called as a self-executing contracts because they emerge up with promising features of being efficient, transparent, and most importantly they reduce the dependency on intermediaries. However, in India there are certain growing issues in terms of the adoption of such smart contracts leading to legal and regulatory questions arising. Now, obviously when smart contracts come up with such efficient automated code driven contracts so talking about the traditional agreements which are long governed by well-established legal framework, definitely may face certain challenges in terms of their interpretation, enforceability and also the comparison with the contracts which are smart. This article focuses and explores the legal validity of smart contracts in India, also diving deep and examining their true potential to break the common practices of traditional agreements and try to fill up the regulatory gaps that exist. Now, by analyzing the current legal scenario and expected future challenges, it aims to provide awareness into whether smart contracts are truly a revolutionary tool or a ticking time bomb for the traditional agreements.