Are the items of a smart contract enforceable?

Select jurisdiction

Germany
  • Germany
  • Italy
  • India
  • Kenya
  • Brazil
  • Austria
  • Poland

Germany

Since a smart contract represents only one contract, as already explained, it can also be
enforced. It is important that the lawyer understands the content of the contract as well as
the code and the associated conditions.

Stephan Hendel, LL.M.

IT Law, Cybercrime

Italy

This is another aspect that neither the legislator intended to regulate nor is there a clear doctrinal interpretation. However, irrevocability and immutability should preclude any intervention by the legal system or the contracting parties, albeit it may be legitimate. Subjecting the smart contract to a judgement would – in theory – be excluded by its self-execution.

Camilla Ambrosino

Corporate M&A

India

As long as a Smart Contract meets the requirements stated in the Indian contract Act 1872, i.e.: an offer, acceptance of the offer, mutual consideration, the competence of parties, free consent, lawful consideration and object, and the Agreement not expressly declared void, it will be enforceable in India and recognized under Section 10A of the Information Technology Act, 2000. The only exceptions are Negotiable Instruments, Will, Trust Deeds, and agreements for sale or conveyance of immovable property.

Ekta Singh

IP, NFT, DAO

Kenya

There is no legal precedent yet on the enforcement of a smart contract in Kenya.

Norman Gabula

Commercial Law

Brazil

Yes, there are still court decisions attesting the validity of agreements made through
the use of technologies involving blockchain, what would include smart contracts and its items
enforceable.

Austria

From a technical point of view smart contracts typically are "self-enforceable", thus in many cases
there is no need to enforce smart contracts by courts. However, provided that smart contracts are
legal contracts and that they have been validly agreed upon, smart contracts could also be legally
enforceable. Of course, especially in the context of consumer settings, with regard to the
programming language that would constitute the contractual language of a smart contract, it has to
be analyzed whether the content of a smart contract has actually be validly agreed upon and how
this programming language is to be interpreted.

Martin Hanzl

Digital Law

Poland

In principle, the smart contract should be self-enforceable, and therefore the issue of enforceability of the contract in front of common courts should not be of great importance. Nevertheless, if the smart contract was not executed as it should have been, and at the same time it has all the features of the contract as understood in Polish civil law, there should exist a possibility to enforce such a contract via the court.

Justyna Maria Bartoszek

FinTech, Crypto & Web3

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