Of course, we still have a long way to go and I think there are always areas where we can improve the situation. But you should no longer use this technology only if you are a Fortune 500 company. Unlike traditional contracts, defined by language, written words or deeds, intelligent contracts are algorithmic, self-performing and self-adherent computer programs. In this article, we analyze intelligent contracts from the point of view of digital platforms and Finnish contract law. We examine how the design mechanisms for general contract law principles can be applied to the new technology framework for smart contracts. In addition, the adoption of smart contracts under existing legislation is assessed on the basis of this analysis. We find that instead of a clearly defined single application case, smart contracts can be applied in a variety of ways and with very different objectives and circumstances. We conclude that intelligent contracts can, in at least some cases, create legally binding rights and obligations to their parties. The most appropriate mechanism for describing the formation of an intelligent contract appears to be a vending machine that implicitly expresses the MOU by carrying out contractual obligations. Until now, contracts have not been seen as a technical resource at the border, in the sense that platform ecosystems could foster wider network effects by opening their technical interfaces to third parties. Smart contracts are an example of the new types of technology contracting practices that companies and policy makers should prepare for in a timely manner.
However, due to the relative immaturity of Smart Contract technology, the number of actual applications currently is still very limited. The development of digital platforms requires a combination of technological, economic and legal perspectives. It is no longer a cost point, but a value-for-business facility. For them, the focus will be more on management than on pure lawyers. Yes, they are still responsible for the good legal advice of their respective companies, but they are also leaders. Part of their work now is business decisions and data on financing, financing, technology use, transformation projects, etc. This means that they must not only be good lawyers and understand the law, but also be good managers and understand business. Regulators around the world are also supporting the technological revolution in the legal sector. In Singapore, for example, The Singapore Academy of Law has formulated one of the most comprehensive legal technology visions in the world and has consistently encouraged the introduction of technology by companies and law firms, while continuing to promote a powerful ecosystem of legal technology business creation to promote disruptive innovation through initiatives such as the Future Law Innovation Program (FLIP) and the Start-Up Accelerator Glide. Other examples are the Recent California Bar proposal to introduce new rules that would allow non-lawyers to invest in law firms and technology companies to provide certain legal services, while the UK had already introduced in 2007 a revolutionary liberalization of the sector by the United Kingdom with the Legal Services Act. ContractPodai co-founder and CEO, Sarvath Misra, tells how people are increasingly influenced on the technology that has been developed for contract management the other way around.
Find out in this Q-A how contract management technology can be traced back to the 2008 financial crisis, the evolution of the contract itself and the evolution of the use of AI, to name a few.