Smart contracts from a legal perspective

Abstract

Smart contracts are a new technology emerging with force due to the opportunities and benefits it can offer. The main innovation is that the terms parties agree to regulate their relations are executed automatically by a computer program. The intention of this Paper is to examine if the Spanish Contract Law is prepared for smart contracts or its modification is needed. First, it is necessary to understand the blockchain technology it can deploy on and the features of smart contracts. Then, under a legal perspective, it analyses if they comply with the essential contract elements -consent, object and cause- and main concerns during its existence regarding formation, performance and breach. Finally, it concludes by recognizing that smart contracts go along with existing Contract Law principles, offers some remedies and encourage legislators and jurists not to ignore these contracts for legal security.