The geopolitical position of cryptocurrency smart contracts in the contract of sale in Iranian law

Abstract

Smart contracts have gained importance in transactions based on sales contracts because they can transfer ownership, pay the price, and enforce the terms of the contract without the need for an intermediary and based on predetermined codes. The possibility of establishing the intention and consent of the parties, the ability to attribute will to the code, the validity of the terms, and the possibility of terminating or dissolving the contract after registration on the blockchain platform are very important issues in Iranian law. Although a smart contract can be considered a template for realizing the agreement of the parties and an example of a sale from a legal perspective, the fulfillment of the basic conditions for the validity of transactions, including competence, the certainty and certainty of the subject of the transaction, and the possibility of applying the general rules of contracts, requires interpretation in accordance with technological developments and sometimes amendment of existing regulations. The result is that cryptocurrency smart contracts have significant potential for streamlining and clarifying sales contracts, but for their full acceptance in the Iranian legal system, challenges such as the validity of electronic evidence, the possibility of monitoring and the ability to apply classical legal institutions to the decentralized structure of the blockchain, the lack of legal identification, the inability to exercise some options, and the irreversibility of transactions that prevent their full acceptance must be considered and reviewed. The present study was conducted using an analytical-descriptive method and shows that smart contracts, if intent and consent are established and the ability to attribute will to the message data, can be included in the form of sales contracts. Finally, legislative and legal proposals are presented for the acceptance and legal regulation of these contracts.