Citing Bitcoin.com, Kelman Law explores the legal enforceability of smart contracts. The article explains that smart contracts can be legally binding if they meet traditional contract law principles such as offer, acceptance, consideration, and intent to be bound. Some states, like Arizona, have explicitly recognized smart contract enforceability, while others rely on existing contract law. Courts increasingly focus on consent and control rather than technical complexity, as seen in cases like Van Loon v. Department of the Treasury. Challenges include immutability, lack of identifiable operators, and compliance with the statute of frauds. The article offers practical tips for drafting enforceable smart contracts, including using plain-language agreements and hybrid on-chain/off-chain structures.
Are Smart Contracts Legally Enforceable? Legal Analysis from Kelman Law
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