Date: 2/12/2025  

                                                                   Category: Blockchain & Web3

 

While smart contracts offer automation and efficiency, they are still subject to traditional legal principles. 

 

Key Risks 

 

Enforceability: A purely self-executing code may not meet contractual requirements under UK law. 

Jurisdiction & Governing Law: Blockchain transactions cross borders — legal disputes can be complex. 

Security & Exploits: Bugs in code can lead to significant financial loss, and legal remedies may be limited. 

 

What This Means for You 

 

Always pair smart contracts with written legal agreements to define governing law and dispute resolution. 

Conduct independent code audits before deployment. 

Maintain off-chain documentation of commercial terms. 

 

TLC Tip: We provide smart contract legal review services to ensure enforceability and compliance with UK law. 

 

 

 

 

 

Smart Contract Legal Risks: Why ‘Code is Law’ Isn’t Enough 

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