ARTICLE
16 December 2016

Can smart contracts be legally binding contracts?

Whether a smart contract can constitute a legally binding contract depends on the law of the contracting jurisdiction.
Australia Corporate/Commercial Law
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An R3* and Norton Rose Fulbright white paper

Smart contracts and distributed ledgers, and the possibilities presented by the combination of the two, have garnered much attention recently, particularly from financial institutions. Distributed ledgers, together with smart contracts, have the ability to automate processes, improve certainty and achieve cost savings and also give scope for reducing legal and regulatory risk. But are smart contracts legally binding?

We have undertaken global research into this question looking at whether, or in what circumstances, smart contacts have legally binding contractual effect, are enforceable, and whether – and to what degree – disputes arising from smart contracts can be resolved by an automated dispute resolution process built into a smart contract.

In association with R3, we have published our findings from across multiple jurisdictions in a white paper, 'Can Smart Contracts be Legally Binding Contracts?' We invite you to read.

Download the white paper.

Download the key findings.

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