Smart Legal Contracts Explained: What Are They and Are They Legally Binding?

Blockchain technology and smart contracts are set to revolutionize many industries, but what are they and are they legally binding?

Are smart contracts even legally binding? And, will these smart legal contracts replace the need for corporate attorneys like Brett?

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Have questions? Book a call, and talk to Brett today:

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You can reach Brett through:


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Brett A. Cenkus has 20+ years of experience in business law, finance, and entrepreneurship. Through Cenkus Law, PC, he provides advice and services for mergers & acquisitions (M&A), securities offerings, founders’ agreements, and other general business law issues.

Through Braaten Woods, LLC, Brett helps business owners in the lower middle market ($2MM - $25MM) position themselves for sale, find buyers, negotiate, and close M&A deals.

Brett regularly consults with entrepreneurs and invests his own capital as an angel investor.

From 2010-2013, Brett served as Chief Legal Counsel of a publicly-traded international oilfield services company. From 2001 to 2006, he and a partner founded and built Paragon Residential Mortgage. Bridge Investments acquired Paragon in 2006.

Brett holds a Juris Doctorate from Harvard Law School and a Bachelor of Arts degree in Economics from Messiah College in Grantham, Pennsylvania.

Brett lives in Austin with his wife, Cathryn, and two children. He enjoys reading, squash, classic movies, great food and wine, and the New England Patriots.

#corporatelaw #mergersandaquisitions #businesslaw #corporatelawyer

[alannarhodes]

Thank you for sharing your thoughts. I appreciate it!

[akivaragen]

You were really ahead on your time on this topic. Thank you.

[CantWeightToTalk]

Thank you soooo much for this “free” information. I will need to speak with you because I am doing a startup but this video has at least got me going in the right direction! Be blessed and talk to you soon.

[convictedprinting]

Thank you for explaining that. Still trying to learn more about smart contracts and how to implement them.

In response to your questions at the end, personally I feel like lawyers are still going to be heavily needed in order to properly write up a smart contract, and to make sure they are enforced properly.

My question is: Since blockchain is so decentralized, how could one "file a claim" against someone not holding up their end of the smart contract? For example, if someone from USA purchases an NFT from someone in Australia, but it isn't upheld, what would need to be done to resolve that issue?

[greghalt]

Hi Brett! There was a certain query I had when a came across a problem

In situations wherein there is a smart contract created between two parties for the delivery of electronic equipment and the transaction takes place all fine but in the later stage there is a concern regarding the availability of its spare part. The electronic machine is created with the use of blockchain technology and only the spare parts made the company can be fitted in. According to the smart contract, the supply of spare parts has to be done within 5 days or else there would be an automated money transaction from your account as it is linked during the enforcement of the smart contract. But the delivery was delayed as there were some issues with the customs department for the spare parts being counterfeits which amounted to the delay by half a day and by the time the transaction had already taken place. Now the money, as well as the spare parts, are already with the other party and now they are not willing to give the money back. In such situations wherein the smart contracts do not deal with a specific scenario, what remedy does the party have and will the smart contract be enforceable?

[cemRecete]

Hi Brett! Thank you for your video. I am a lawyer as well and currently doing a master's in law. I watched and like it but i have several follow-up questions. If you have time to answer, I will be glad.

With regards to the subject-matter my initial question is what if the subject matter was not lawful? You can enforce it through computers but they are not legal from the eyes of judges, right? This is confusing or is that what the novelty all about?...

Concerning the formation what if one of the parties lost his legal capacity after the block is set? What if the smart contract is concluded by mistake or as a result of fraudulent misrepresentation or coercion or threats or unfair exploitation of the relationship of trust? Can the modification of smart contracts or suspension of implementations thereof be possible in these cases?

Regards,
Cemre

[misterjaypeasmith]

I have said for a long time, the forms are free but the advice will cost!

[natalieebolum]

This is great. What's the website to the firm that you mentioned that has free forms. I can direct folks there. Something carington?!

[carlosotero]

It's all hype....what gives trust the the consultation for the lawyer...if makes you feel comfortable