If a court order is against the logic of a smart contract, how can it be enforced?

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Regarding the enforcement of a court order, it makes no difference whether a smart contract
is involved or not, as the order affects not the smart contract as a technical feature but the
legal relationship behind it. Therefore, relevant is only the legal qualification of the
underlying action itself and not the technical feature. Obligations arising from the legal
relationship behind the smart contract should be fulfilled like any other obligation.
If the logic of a smart contract violates the law and/or is contradictory to a court order, the
person who is liable for the breach should ensure that the legally required actions are taken.
How he fulfills this obligation technically depends on the circumstances of the respective
case which might require that the smart contract is deleted or replaced by another one.

Zsofia Vig

Banking and Capital Markets Law (DeFi/Web3, Crypto in general, tokenized Securities)


Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. These contracts are stored on the blockchain and are executed automatically when certain conditions are met. In most cases, a court order would not be able to directly affect the execution of a smart contract because the contract is executed by the underlying code on the blockchain, not by a person or organization.

However, a court order may be able to indirectly affect the enforcement of a smart contract. For example, a court order could require a person or organization to take certain actions that would prevent the execution of a smart contract. Alternatively, a court order could require a person or
organization to transfer ownership of the assets involved in the smart contract, which could also affect the execution of the contract. Ultimately, the ability of a court order to enforce its decision in a situation involving a smart contract would depend on the specific facts.

Garv Sultania

Web3 Regulations; Jurisdictions;


It could only be enforced if the courts are able to determine the people participating in
the relationship enforced by the smart contract.


The court order is not aimed at amending the smart contract itself, but at shaping the legal relationship between the parties hidden behind the smart contract. Therefore such an order should be enforced similarly to any other court order.

Justyna Maria Bartoszek

FinTech, Crypto & Web3

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