Smart contracts and legal issues arising from smart contracts

Abstract

Ongoing technological innovations leaded to humanity to be in search of a new type of contract which can be created by Technology rather than classical methods. The idea behind of these researches was to get benefit from the conveniences that Technology provides. In 1994, Computer scientist, lawyer and cryptographer Nick Szabo introduced a new type of contract which calls ''smart contracts'' to the world. The present work analyses the historical evolution of smart contracts, how smart contracts work and what is the connection between smart contracts and Blockchain. In this essay author also examines the legal issues arising over the smart contracts, the status of smart contracts and its enforceability in current legal order as well as the advantages and disadvantages of using smart contracts. However more importantly, the aim of the work is to explain significance of smart contracts for business future.