Enforcement of smart contracts in cross-jurisdictional transactions

Abstract

Purpose

This research aims to explore the complexities surrounding smart contracts enforcements in cross-jurisdictional transactions.

Design/methodology/approach

To achieve the aim of this study, doctrinal legal analysis was adopted. Although the subject is multidisciplinary, the aspect of enforcement in cross-jurisdictional transactions from legislative analysis does not require a technical method to be analysed, hence the adoption of this method. Where relevant legal academic journal articles were sourced and analysed along different legislative frameworks in some jurisdictions under review. To determine the legality of smart contracts, applicable law and court with jurisdiction to enforce blockchain smart contract disputes.

Findings

It was discovered that there remain fundamental questions regarding jurisdiction, applicable law and enforcement. Due to the problem of a uniform legislation to manage smart contract transactions.

Research limitations/implications

This study limits itself to the legality of smart contracts within a conflict of laws, and it propels the need for either a choice of domestic legislation for parties to be bound or the adoption of a universal legal framework for all smart contract formation through an international treaty or convention that has a binding effect on contracting parties to a smart contract.

Originality/value

This study highlights the fact that the key elements of smart contracts within traditional contract requirements as provided in domestic legislation vary across jurisdictions. This variation results not only in conflict of law but also affects enforcement in cases of dispute in the contractual terms.

Citation

Atiyah, G.A., Ibrahim, A.I. and Jasim, A.A. (2024), "Enforcement of smart contracts in cross-jurisdictional transactions", International Journal of Law and Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJLMA-06-2024-0220