Analysis of general conditions of smart contracts validity from Iranian and American legal perspective

Nejatzadegan, Saeid; Soltani, Mohammad

doi:10.52547/jlr.2023.226492.2144

Analysis of general conditions of smart contracts validity from Iranian and American legal perspective

Document Type : Original Article

Authors

Saeid Nejatzadegan ¹

Mohammad Soltani ²

¹ PhD student on private law at Shahid Beheshti University

² Associate Professor at Shahid Beheshti University (Faculty of law)

10.52547/jlr.2023.226492.2144

Abstract

A smart contract is one type of electronic contract whose specific feature is automatic execution. General validity conditions of contracts should be met to determine the validity of a smart contract. General validity conditions of a contract from Iran and the United States of America perspective consist of parties’ capacity, mutual agreement, valid subject-matter, and legitimacy of contract purpose. As described in this article, parties’ capacity normally does not examine in the routine procedure of smart contract conclusion, and it’s obligatory to ensure the complete capacity of parties by additional measures. Mutual agreements easily can be determined in smart contracts. Smart contracts can be concluded as reciprocal or nonreciprocal; and this article clarifies if there was no consideration in a nonreciprocal smart contract, it should be deemed as void in USA territory. Finally, if the purpose of a smart contract conclusion was illegal, undoubtedly that contract will be invalid in both Iran and USA territory.

Keywords

Electronic Contract

contracts validity conditions

Cryptocurrency

blockchain

smart contract

Subjects