Law Institute

SMART CONTRACTS: DO WE NEED NEW LEGAL RULES?

UNSW Sydney, 8th February 2019

Prof. Dr. Rolf H. WeberUniversity of Zurich

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Smart Contract (SC): Notion

Technology, not Contract

Description of “Contractual Relation” in the “Computerroutine”

Prof. SMART CONTRACTS: DO WE NEED NEW LEGAL RULES? Dr. Rolf H. Weber20198 February

Szabo: Computerized Transaction Protocol

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Characteristics of SC

Self-determined

Unchangeable

Prof. SMART CONTRACTS: DO WE NEED NEW LEGAL RULES? Dr. Rolf H. Weber

Self-executing

Digital Performance

20198 February

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Specifics of SC

Low Transaction and Enforcement Costs

Digital “Expression” of Performance

Prof. SMART CONTRACTS: DO WE NEED NEW LEGAL RULES? Dr. Rolf H. Weber

Technological (Legal) Security and Transparency

“Bridge” to Offline World through Oracle

“Law is Code”

20198 February

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5Prof. SMART CONTRACTS: DO WE NEED NEW LEGAL RULES? Dr. Rolf H. Weber20198 February

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Contract Formation in Civil Law Countries

Understandability of Programming Code?

Interpretation of “Computerroutine”?

Prof. SMART CONTRACTS: DO WE NEED NEW LEGAL RULES? Dr. Rolf H. Weber

Exchange of Intent Declarations

Special Problem: General Business Conditions

20198 February

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Contract Formation in Common Law Countries

Meeting of the Minds (Restatement Second, Art. 2 UCC)

Automated Means (UETA, ESIGN, UCITA)

Prof. SMART CONTRACTS: DO WE NEED NEW LEGAL RULES? Dr. Rolf H. Weber

Enciphered Telegraphs (US Supreme Court)

20198 February

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8Prof. SMART CONTRACTS: DO WE NEED NEW LEGAL RULES? Dr. Rolf H. Weber20198 February

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“Anomalies” in Contract Formation

Prof. SMART CONTRACTS: DO WE NEED NEW LEGAL RULES? Dr. Rolf H. Weber

IllegalityPublic Order, Immorality

Contract in Writing

ContestabilityBasic Material Error

“Translation” Error

Form:

Substance:

20198 February

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New Legal Rules for Formation of SC?

Narrowing of Requirement “in Writing”

Oracle Requirement for Illegality Situations

Prof. SMART CONTRACTS: DO WE NEED NEW LEGAL RULES? Dr. Rolf H. Weber

No Adjustment Need in General

Standardization through Self-Regulation

20198 February

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11Prof. SMART CONTRACTS: DO WE NEED NEW LEGAL RULES? Dr. Rolf H. Weber20198 February

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Performance of SC

Limited Importance of Several Types of Contractual Non--Performance

Oracle as Auxiliary Person?

Prof. SMART CONTRACTS: DO WE NEED NEW LEGAL RULES? Dr. Rolf H. Weber

Pacta sunt servanda

20198 February

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Technology and Programming Failures in SC

Diligence Standards

Spheres’ Theory: Allocation of Responsibility

Prof. SMART CONTRACTS: DO WE NEED NEW LEGAL RULES? Dr. Rolf H. Weber

Preventive Measures

Probability based on Artificial Intelligence

20198 February

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Digital Execution and Enforcement of SC

Securities’ Requirements

Prof. SMART CONTRACTS: DO WE NEED NEW LEGAL RULES? Dr. Rolf H. Weber

Assignment Aspects

EnforcementProcedural Issues

Arbitration Library through Oracle

20198 February

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New Legal Rules in Case of Non-Performance of SC

Clarification of Auxiliary Person

No Adjustment Need in General

Facilitation ofDigital

Execution Oracle / Arbitration Library

“Transfer” of Securities

20198 February Prof. SMART CONTRACTS: DO WE NEED NEW LEGAL RULES? Dr. Rolf H. Weber

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Outlook

Minor Adjustments Desirable

Facilitation of Digital Execution

Prof. SMART CONTRACTS: DO WE NEED NEW LEGAL RULES? Dr. Rolf H. Weber

Innovative Interpretation of Existing Rules as “Solution”

20198 February