The Legal Status of Smart Contracts According to the Jordanian Civil Law Theory of Contracts

Abstract

Contract theory is considered one of the legal theories most affected by technological development. Technology has become a challenge and a test of the extent to which the provisions of the law related to the contract on the basis whether such theory is able to respond to technical development. This paper deals with smart contracts in the light of the Jordanian civil law texts and the Jordanian electronic transactions law, to determine whether the current legal texts can recognize the legality of such contracts on the one hand and the ability of the Jordanian legal system to apply this type of contracts. It has been concluded that the smart contract cannot be considered a contract unless the basic pillars of any of the contracts stipulated in the civil law are available. The Jordanian Electronic Transactions Law until the moment of writing does not regulate smart contracts based on automated implementation of the terms of the contract without human intervention, as it covers only the stage of contract creation. In addition, the mechanism of creating and implementing this type of contract constitutes a legal challenge to most of the rules governing the contract in Jordanian law.