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29 November 2021
Issue: 7959 / Categories: Legal News , Profession , Technology
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Smart contracts are legal & viable, Law Commission confirms

The Law Commission has confirmed that smart legal contracts can be accommodated by existing law, and there is no need for statutory law reform
While some incremental development of the common law may be required in some contexts, the current legal framework is sufficiently robust, the Commission concluded last week. To avoid any potential difficulties, however, it encouraged parties to include express terms such as clauses allocating risk in relation to the performance of the code, and setting out clearly the relationship between any natural language and coded components.

The Law Commission also published a short update paper on its work on cryptoassets and other digital assets. It explains that the Commission’s work will address different sub-categories of digital assets, and will consider whether certain digital assets might be most accurately categorised within a third category of property, distinct from the existing categories of tangible property (things in possession) and intangible property (things in action).

Professor Sarah Green, the Law Commissioner for the Commercial and Common Law Team, said: ‘Smart legal contracts could revolutionise the way we do business, particularly by increasing efficiency and transparency in transactions.

‘We have concluded that the current legal framework is clearly able to facilitate and support the use of smart legal contracts; an important step in ensuring increased recognition and facilitation of these agreements. Our related work on digital assets and conflict of laws will further establish England and Wales as a global leader for technological innovations in the digital sphere.’

A Law Society spokesperson said: ‘It’s a thoughtful analysis of the legal issues relating to digital commerce and makes a key contribution to ensuring the UK remains the best destination for digital business in future.’

 

Issue: 7959 / Categories: Legal News , Profession , Technology
printer mail-details

MOVERS & SHAKERS

Anthony Collins—20 promotions

Anthony Collins—20 promotions

20 promotions mark major people investment at national law firm, Anthony Collins

Sidley—Elaine Whiteford

Sidley—Elaine Whiteford

Sidley adds competition litigator Elaine Whiteford in London

Charles Russell Speechlys—Claudina D’Costa

Charles Russell Speechlys—Claudina D’Costa

Charles Russell Speechlys welcomes Claudina D’Costa as Director of Client Development Marketing

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