scholarly journals Išmaniosios sutartys: teisinis reglamentavimas ir jo problematika

2020 ◽  
pp. 122-144
Author(s):  
Emilija Bartkutė ◽  
Gabrielė Gumbytė
Keyword(s):  
Research Paper ◽  
Legal Regulation ◽  
Civil Code ◽  
Specific Form ◽  
Third Party ◽  
Smart Contracts ◽  
Smart Contract ◽  
Basic Functions ◽  
The Republic

This research paper deals with the Institute of Smart Contracts, reveals legal regulation and its problems. In the first part of the work, using the attributes: immutability, specific form and operation without third party mediation, and the basic functions of storing, validating and executing, the concept of smart contracts is revealed. Also, in order to fully disclose the exclusivity of these contracts, fundamental differences from automated transactions are discussed. In the second part – three contract institutes are distinguished, in the context of which the compatibility of smart contracts with the Civil Code of the Republic of Lithuania is assessed. First of all, it discusses the formation and its characteristics, in addition it is evaluated whether the formation of the smart contract violates the norms of the Civil Code of the Republic of Lithuania. Further, the exclusive execution of these contracts and their compliance with Chapter XVI of the Civil Code of the Republic of Lithuania is disclosed. Finally, the paper examines possible breaches of smart contracts, ways to resolve them, as well as customization and compatibility.

scholarly journals Advantages and disadvantages of smart-contracts as the basis for the emergence of ownership

2021 ◽  
pp. 101-105
Author(s):  
K. Nekit
Keyword(s):  
Property Rights ◽  
Legal Aspect ◽  
Legal Regulation ◽  
Third Party ◽  
Smart Contracts ◽  
Advantages And Disadvantages ◽  
Technical Errors ◽  
Smart Contract ◽  
Legal Nature ◽  
Definition Of

The article examines the concepts, legal nature of smart contracts, as well as the advantages and disadvantages of smart contracts as a basis for ownership. The technical and legal aspect of the concept of smart contract is considered. Models of using smart contracts are described. Approaches to determining the legal nature of smart contracts are presented. It is concluded that two models must be considered when using smart contracts. The first model is external, when the program code does not replace the agreement, but only automates its execution. The second model is internal, when the code completely or partially replaces the terms of the agreement. Among the advantages of smart contracts as grounds for the emergence of property rights can be identified, first of all, the inability to change the terms of the contract and interference in its work. However, at the same time, this feature is a disadvantage of the smart contract, as it does not allow to take into account the objective circumstances that may affect the implementation of the agreement. The problem of oracles when using smart contracts is also considered. It is noted that the use of oracles actually means the involvement of a third party in the transaction with all the risks that arise from it. The problem of involving notaries and state registrars in transactions on acquisition of property rights on the basis of a smart contract is analyzed. The problems of lack of legal regulation of smart contracts, in particular, related to its transnational nature, is investigated. The problem of protection of the rights of the parties to the smart contract is analyzed, in particular, related to technical errors and outside interference. Temporary solutions regarding the use of smart contracts and general recommendations on the legislative definition of smart contracts are proposed.

scholarly journals Smart-Contracts in the digital economy: Contractual regulation and dispute resolution

2021 ◽  
Vol 2 (4) ◽  
pp. 40-50
Author(s):  
S. A. Sinitsyn ◽  
M. O. Diakonova ◽  
T. I. Chursina
Keyword(s):  
Legal Regulation ◽  
Self Control ◽  
Third Party ◽  
Physical Contact ◽  
Smart Contracts ◽  
Digital Platforms ◽  
Blockchain Technology ◽  
Smart Contract ◽  
Materials Used ◽  
Automatic Code

This article has been prepared for the research purpose of identifying, disclosing, and justifying certain trends in the development of civil law and procedures in the context of the spread of smart contract practices and the expansion of their spheres of application. At the moment, there is no uniform approach to choosing an optimal form for the legal regulation of smart contracts within the system of contract law in modern legal systems or international law; meanwhile, globalization and the digitalization of the economy imply the growth of cross-border transactions. The emergence of smart contracts is due to the development of e-commerce, in which the parties’ interactions are carried out electronically instead of in physical exchanges or direct physical contact. Smart contracts gaining popularity in circulation are based on two interrelated elements: firstly, they eliminate a person’s direct participation in some or all cases of executing the agreement using an automated code designed for execution without reference to the intentions of the contracting parties after publication; secondly, they make use of decentralized blockchain technology, and also provide automatic code execution without any party’s potential intervention, so as to eliminate or reduce the self-control and third-party control of the commitment.This study examines the content, conclusion, validity, protection of rights and legitimate interests of the parties, interpretation, and legal nature of smart contracts. The research materials used foreign experience in resolving disputes from smart contracts on digital platforms (Kleros, JUR, Aragon Network Justice, OpenCourt, OpenBazaar), as well as domestic and foreign literature on smart contracts. This research has been prepared based on general (deduction, dialectical analysis, intersectoral relations of objects) and specialized (comparative-legal, economic-legal) methods of scientific experimentation.The authors conclude that there are no grounds for considering a smart contract as a new classification element of the system of contractual regulation (type or kind of contract). In addition, the analysis shows that the resolution of smart contract disputes through digital platforms remains radically uncertain, and currently is not creating obvious advantages in comparison with traditional judicial proceedings.

Trust but Verify: The Oracle Paradox of Blockchain Smart Contracts

2021 ◽  
Author(s):  
Abdullah Albizri ◽  
Deniz Appelbaum
Keyword(s):  
Internal Control ◽  
Process Management ◽  
Weak Link ◽  
Design Science ◽  
Science Research ◽  
Third Party ◽  
Smart Contracts ◽  
Independent Verification ◽  
Smart Contract ◽  
Control Application

Although research shows that blockchain provides fairly immutable virtual provenance workflows, proof that the Blockchain accurately represents physical events lacks truly independent verification. This dilemma, the Oracle Paradox, challenges blockchain architecture and is perhaps one reason why businesses have hesitated to adopt smart contracts. Blockchain proponents claim that people can serve as trusted Oracles in a smart contract. However, auditing research shows that people are the weak link in almost every internal control application, including those pertaining to blockchain. People are susceptible to collusion, bribery, error, and fraud and these tendencies are not entirely mitigated by blockchain technologies (Balagurusamy et al. 2019; Nakamoto 2008). This research proposes a framework to mitigate the paradox of the Oracle: A Business Process Management (BPM) model of a Blockchain Smart Contract-enabled Supply Chain with IoT as the sole "third-party" Oracle participant, utilizing Design Science research.

scholarly journals Features of Legal Regulation of the Circulation Order of Gift Certificates

2019 ◽  
pp. 72-80
Author(s):  
Avak Vartanian
Keyword(s):  
Civil Law ◽  
Legal Regulation ◽  
Civil Code ◽  
Advance Payment ◽  
Foreign Countries ◽  
The Gift ◽  
The Usa ◽  
The Subject ◽  
The Republic ◽  
Gift Certificate

The article analyzes the novels of the legislation of the Republic of Belarus concerning the procedure for using gift certificates when selling goods (performance of works, rendering services). It has been done a comparative analysis of the legal regulation of the procedure for circulation of gift certificates in the Republic of Belarus, Ukraine and some foreign countries (Canada, the USA). The author raises some problems concerning the use of a gift certificate in civil circulation. It is pointed out that there is uncertainty both in the theory of civil law and at the level of legislative regulation regarding the civil law nature of a gift certificate. It is noted that the analysis of the legislation in force in the Republic of Belarus allows us to define a gift certificate as a document certifying the property right (requirement) of its holder (bearer) to receive goods (works, services), and the amount of money contributed when purchasing a gift certificate, as advance payment (advance payment). At the same time, such an approach of the legislator is criticized due to the fact that there is a clear contradiction to the requirements of Art. 402 of the Civil Code of the Republic of Belarus, from the content of which it follows that the advance payment presupposes the existence of a contract in which the subject has been agreed, which is not typical of most gift certificates, due to the fact that they do not contain an indication of the subject of the contract. Having done the analysis of the civil legislation of Ukraine, the author makes a conclusion that there is application of the rules on a purchase agreement to gift certificates, the subject of which may be property rights in accordance with the Civil Code of Ukraine. The conclusion is made about the imperfection of the legal regulation of the procedure for circulation of gift certificates in the Republic of Belarus and Ukraine, as well as about the complex legal nature of the gift certificate, regarding which legal regulation should be more universal, defining a gift certificate as an independent object of civil legal relationship.

scholarly journals Expansion of party replacement designs in the commitment in the civil law of Ukraine

2020 ◽  
pp. 298-305
Author(s):  
Venetskay Marina
Keyword(s):  
Property Rights ◽  
Civil Law ◽  
Legal Regulation ◽  
Contract Law ◽  
Civil Code ◽  
Third Party ◽  
European Legislation ◽  
Economic Practice ◽  
Direct Indication ◽  
Additional Costs

The article is devoted to improving the legal regulation of the replacement of a party to an obligation in the civil legislation of Ukraine, taking into account the needs of civilian turnover and economic practice. The reasonability of the additional settlement of issues of reimbursement of contracts for the assignment of claims and compensation for additional costs associated with such a concession, as well as the introduction of the institution of the assignment of contracts into Ukrainian civil law, is argued. The lack of a direct indication of the law on the remuneration of a claim for assignment of a claim has led to the emergence of a number of interpretations of such a transaction as being non-remunerative. Meanwhile, according to the basic provisions of the Civil Code of Contract - the contract is repayable, unless otherwise stipulated by the contract, law or does not follow from the essence of the contract. In addition, the consequence of concluding a deed of assignment claim is the acquisition by the new creditor of property rights that are property, so the free acquisition of property must be considered as a gift, an indication that is absent in the legislation. Unknown to the contract law of Ukraine and the civil institute of contract withdrawal, which is sufficiently widespread in economic practice and is regulated by European legislation. . The meaning of a contract cancellation is to transfer from one person to another the rights and obligations under the contract with a third party, ie it is a simultaneous combination of the cancellation of claims and the transfer of debt. It is necessary to extend the methods (structures) of transfer of debt through the introduction in Ukrainian civil law of the methods known since Roman times, in particular, the expropriation as a separate construction of the replacement of the debtor in the obligation, which occurs on the initiative of the creditor and on the basis of the agreement concluded between such credit and the new debtor in the absence of the need to obtain such consent from the original debtor; and intercession as a construct, when a new debtor is joined to the obligation (which may be divisible) and each of them must fulfill the obligation in its share.

scholarly journals Smart Contract: The Concept, Legal Nature, Features of Conclusion and Execution

Legal Concept ◽  
2019 ◽  
pp. 54-60
Author(s):  
Nizami Safarli
Keyword(s):  
Russian Federation ◽  
Legal Regulation ◽  
Smart Contracts ◽  
Advantages And Disadvantages ◽  
Blockchain Technology ◽  
Smart Contract ◽  
Legal Nature ◽  
Domestic Legislation ◽  
The Russian Federation ◽  
Statutory Regulation

Introduction: the paper is devoted to a new phenomenon in business activity in the conditions of IT development that contribute to the creation of secure contractual relations on the Internet on the basis of transactions executed through smart contracts. The author notes that the need for amendments that could fill the loopholes in the current legislation is obvious. And, first of all, it concerns Blockchain technology – the algorithm that mediates the safe development, conclusion and execution of smart contracts. Blockchain technology is considered in the paper as one of the safest means for concluding and executing smart contracts. The author argues that the study of the concept, legal nature and essence of smart contracts is relevant in the light of spreading their share in the total array of transactions in the world economy in conjunction with the changing domestic legislation governing the relevant sphere, as well as the international integration processes affecting the intensification of foreign economic activity of the Russian Federation. The smart contract concepts formulated by the Russian legislator in the process of upgrading the array of statutory regulation under conditions of economy digitalization are studied and compared. The features of conclusion and protection of the smart contract in the civil legislation of the Russian Federation are analyzed. In order to fully articulate the concept of the smart contract, reflecting its essence, functional purpose and legal nature, it is proposed to create a special law that would focus on the conclusion and implementation of “the smart contract” and the specification of the general norms of the civil code. At the same time, the norms of other special laws would supplement and correct the provisions fixed by this act depending on the sphere of managing and the legal regulation branch. The concept of the smart contract is formulated; its value for economic and contractual activity, and also the advantages and disadvantages of its application are established. The possible classifications of smart contracts are given.

scholarly journals Regulation of the Smart Contract in (Romanian) Civil Law

2021 ◽  
Vol 8 (2) ◽  
pp. 95-111
Author(s):  
Raluca Onufreiciuc ◽  
Lorena-Elena Stănescu
Keyword(s):  
Civil Law ◽  
Computer Code ◽  
Computer Programs ◽  
Legal Regulation ◽  
Contract Law ◽  
Use Case ◽  
Smart Contracts ◽  
Crucial Question ◽  
Smart Contract ◽  
The Subject

The research aims to organize, examine, and analyze the provisions on smart contracts available in Romanian civil law. “Smart contracts” are not smart, and are not necessarily contracts, although they can be. As self-executing computer programs, smart contracts are operational on the blockchain and unlike traditional legal contracts, once the agreement has been concluded and the smart contract is set in motion, no party can intervene and it will be executed without interruption, modification, or breach. The crucial question in the final contract law topic is what happens when the smart contract's outcomes deviate from those required by law. To answer this issue, we must first understand that whether a smart contract becomes legally enforceable is determined by several circumstances, together with the unique use case, the type of smart contract employed, and the existing legislation. The paper addresses the subject of determining and regulating smart contracts under Romanian current laws. Particular emphasis is placed on two ambiguous definitions of smart contracts: as computer code and as a civil-law contract. The authors conclude that the concept of smart contracts requires more legal regulation, particularly in terms of managing their meaning and comprehension.

Recodification of the Civil Code of Ukraine and modernisation of the Civil Code of the Republic of Kazakhstan: A comparative analysis of the main ideas

2021 ◽  
Vol 28 (4) ◽  
pp. 190-199
Author(s):  
Nataliia S. Kuznietsova ◽  
Maidan K. Suleimenov ◽  
Farkhad S. Karagusov
Keyword(s):  
System Analysis ◽  
Civil Law ◽  
Legal Regulation ◽  
Civil Code ◽  
Current State ◽  
Clear Guideline ◽  
The Republic ◽  
Civil Codes ◽  
Historical Comparative ◽  
Main Ideas

Systematic updating of the civil legislation of Ukraine and modernisation of the civil legislation of the Republic of Kazakhstan are time-consuming tasks as evidenced by the analysis of changes that were made to the civil codes of Ukraine and the Republic of Kazakhstan and their law enforcement practice. Work on updating civil legislation requires an assessment of the current state and prospects of socio-economic development of Ukrainian society and the state, in particular the development of such an important component as the national legal system, which is presented in the concept of updating the Civil Code of Ukraine. It is crucial that the main areas of the concept orient the development of civil law in Ukraine, considering the current experience of recodification of civil codes of other states within the continental legal family. Considering that civil legislation is also being modernised in the Republic of Kazakhstan, the purpose of this study is to compare the main ideas of recodification of the Civil Code of Ukraine and modernisation of the Civil Code of the Republic of Kazakhstan to establish a systematic approach and a unified concept for the development of civil law and form a clear guideline for the improvement of civil legislation. The study analyses the areas of updating the civil legislation of Ukraine and the Republic of Kazakhstan based on both general (historical, comparative, system analysis) and special (specific-sociological, formal legal, legal-technical, etc.) methods. One of the most reasonable ways to ensure continuity of legal regulation of civil relations and ensure the modernisation of the legal basis for the development of the sphere of social and legal relations in the long term is the approach that should preserve all the achievements of existing civil codes, considering modern European approaches and the specific features of civil and business turnover

scholarly journals OVERCOMING OF THE CONFLICT OF INTERESTS IN AGENCY RELATIONS

2015 ◽  
Vol 1 (4) ◽  
pp. 0-0
Keyword(s):  
Russian Federation ◽  
Legal Regulation ◽  
Civil Code ◽  
Third Party ◽  
European Contract ◽  
Dual Representation ◽  
Conflict Of Interests ◽  
Commercial Practice ◽  
Dialectical Approach ◽  
Methods Of Learning

The article considers the issues of legal regulation of overcoming of the conflict of interests in agency relations which could potentially occur when an agent acts as a counterparty of a principal in ordered transaction or when an agent concurrently represents different parties to the transaction (dual representation). The author refers to the review of soft law: UNIDROIT Principles of International Commercial Contracts, Principles of European Contract Law, Model Rules of European Private Law (Draft Common Frame of Reference). The author specifies the ways of overcoming of the conflict of interests in transnational relations between an agent and a principal, between an agent, a principal and a third party, which are inherent in international commercial practice and which are due to the awareness of a principal or a third party about the conflict of interests. The author examines the rules of the Civil Code of Russian Federation on the conflict of interests in agency relations which had been recently changed in connection with the adoption of the Federal law of 7th May 2013 № 100-FZ “On amendments to the subsections 4 and 5 of section I of the first part and the article 1153 of the third part of the Civil Code of Russian Federation”. This article is based on a combination of methods of cognition, which amounted to a systematic and dialectical approach. The author appeals to the general scientific methods (analysis, synthesis, induction, deduction) and to the specially-legal methods of learning: formal-legal, comparative legal, structural and functional. The author concludes about the necessity of the following improving of Russian civil legislation in respect of overcoming of the conflict of interests in agency relations particularly on the base of progressive international practice. The author proposes to define stages and forms of consent of a principal to the actions of an agent in situation of the conflict of interests.

scholarly journals SMART CONTRACT AS A FORM OF CIVIL CONTRACT

2019 ◽  
pp. 15-20
Author(s):  
V. Varavka
Keyword(s):  
Information Technologies ◽  
Legal Status ◽  
Legal Regulation ◽  
Smart Contracts ◽  
Electronic Signature ◽  
Mathematical Algorithm ◽  
Blockchain Technology ◽  
Smart Contract ◽  
Civil Contract ◽  
Legal Force

Development of information technologies, cryptocurrencies and technology of distributed networks has caused the appearance of smart con- tracts as new types of civil contract. They have been widely used in recent years in such areas as initial coins offering (ICO), financial sector, inter- national trade and public services. At the same time the legal status and legal regulation of smart contracts are uncertain. These uncertainties cause many legal risks of smart-contractsutilization. The purpose of this article is to find out the conception of smart contract as a form of civil contract, to research its legal status and legal regula- tion issues and to develop proposals for the improvement of legal regulation of smart contracts and cryptocurrencies in Ukraine. By its legal nature a smart contract is a digital form of a civil contract realized in programming code automatically executed in a distributed network. Like a civil contract, smart contract has such elements as parties, subject and essential terms of the contract. The legal force of a smart contract depends on whether it includes the fundamental features of a civil contact, such as evidence that parties have intention to create legal relations, understandabil- ity of contract conditions and possibility to perform the terms of the contract under duress. The main advantages of a smart contract are its ability to significantly accelerate and reduce costs of the transaction and guarantee the fulfillment of contract terms regardless of the contractual parties' and third parties' will. The main risks of a smart contract are uncertainty of legal status of a smart contract and cryptocurrencies as a means of payment, complexity of expressing the contact terms in a mathematical algorithm, risk of software bugs and hacking attack. To solve the problems of legal regulation of smart contracts in Ukraine it is necessary to change the legislation in order to settle the legal status of cryptocurrencies and recognize a smart contract as a form of a civil contract. It is necessary to identify parties of the smart contract, confirm their agreement on the terms of the smart contract by using digital electronic signature. A smart contract should be supplemented by text application containing the es- sential terms of the contract which will have legal force in trail. It is necessary to implement blockchain technology in the state registers and pro- vide legal ability to make adjustments in the registers automatically for the performance of smartcontracts.

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