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Rechtsanwalt Marian Härtel - ITMediaLaw

Smart contract implementation in traditional contracts

10. October 2024
in Blockchain and web law
Reading Time: 2 mins read
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smart contract implementierung in traditionelle vertraege
Key Facts
  • The integration of smart contracts into traditional contracts offers blockchain start-ups many opportunities and legal challenges.
  • The legal classification of smart contracts is often unclear, particularly with regard to contract law and formal requirements.
  • Hybrid contract structures are important for embedding smart contracts in an overarching legal framework.
  • Automation through smart contracts raises new liability issues, particularly in the event of errors in the code.
  • The immutability of blockchain entries can make it difficult to amend and terminate contracts.
  • Thorough legal due diligence is crucial for the successful integration of smart contracts.
  • The development of a compliance strategy is necessary to ensure GDPR conformity.

The integration of smart contracts into traditional contract structures opens up fascinating opportunities for blockchain start-ups, but also poses complex legal challenges. As a lawyer with many years of experience as an entrepreneur in the tech sector, I understand both the technical aspects and the legal implications of this innovative form of contract. This article highlights the most important legal aspects that blockchain startups need to consider when implementing smart contracts.

Content Hide
1. Legal classification of smart contracts
2. Challenges of integration into traditional contracts
3. Practical implementation and risk management
3.1. Author: Marian Härtel

Legal classification of smart contracts

Smart contracts are self-executing contracts whose terms are written directly in computer code. Their legal classification is not always clear:

1 Contract law perspective: Smart contracts can be understood as declarations of intent within the meaning of Section 116 BGB. The special feature lies in the automated execution.

2. formal requirements: The question arises as to whether smart contracts can fulfill the written form requirement pursuant to Section 126 BGB. A differentiated approach is necessary here.

3 Conclusion of contract: The time of contract conclusion for smart contracts can be unclear. It must be clarified whether the programming is already considered a binding offer or only when the transaction is triggered.

As an experienced lawyer and entrepreneur, I can help you clarify these complex issues for your specific blockchain project and develop legally compliant solutions.

Challenges of integration into traditional contracts

The combination of smart contracts with traditional contract structures requires careful legal structuring:

1. hybrid contract structures: It is advisable to embed smart contracts in an overarching legal framework contract. This makes it possible to integrate complex legal concepts that cannot be easily translated into code.

2 Liability issues: Automation through smart contracts raises new liability issues. Who is liable in the event of errors in the code or unforeseen events?

3. contract amendment and termination: The immutability of blockchain entries can make it difficult to subsequently amend or terminate contracts. Flexible mechanisms must be implemented here.

4. data protection: the use of personal data in smart contracts must be GDPR-compliant

My experience as an entrepreneur in the tech sector enables me to develop innovative solutions to these challenges that are both legally sound and practical to implement.

Practical implementation and risk management

I recommend the following steps for the successful integration of smart contracts into your business processes:

1. legal due diligence: Carry out a thorough analysis of the legal implications of your smart contract project.

2. contract design: develop hybrid contract structures that combine smart contracts with traditional legal elements

3. governance structures: implement clear governance mechanisms for managing and updating smart contracts

4. dispute resolution mechanisms: Integrate dispute resolution procedures that take into account both the technical and legal aspects.

5. compliance strategy: develop a comprehensive compliance strategy that takes into account the specific requirements of smart contracts

As a lawyer with entrepreneurial experience, I can support you in each of these steps and develop customized solutions that optimally safeguard your business model.

The integration of smart contracts into traditional contract structures offers enormous potential for blockchain start-ups, but requires careful legal structuring. My combination of legal expertise and entrepreneurial experience in the tech sector enables me to provide you with holistic advice. I understand not only the legal requirements, but also the business implications and technical challenges of your project.

Let us work together to develop innovative and legally compliant solutions that put your blockchain startup on a solid legal footing while leaving room for innovation and growth.

 

Marian Härtel
Author: Marian Härtel

Marian Härtel ist Rechtsanwalt und Fachanwalt für IT-Recht mit einer über 25-jährigen Erfahrung als Unternehmer und Berater in den Bereichen Games, E-Sport, Blockchain, SaaS und Künstliche Intelligenz. Seine Beratungsschwerpunkte umfassen neben dem IT-Recht insbesondere das Urheberrecht, Medienrecht sowie Wettbewerbsrecht. Er betreut schwerpunktmäßig Start-ups, Agenturen und Influencer, die er in strategischen Fragen, komplexen Vertragsangelegenheiten sowie bei Investitionsprojekten begleitet. Dabei zeichnet sich seine Beratung durch einen interdisziplinären Ansatz aus, der juristische Expertise und langjährige unternehmerische Erfahrung miteinander verbindet. Ziel seiner Tätigkeit ist stets, Mandanten praxisorientierte Lösungen anzubieten und rechtlich fundierte Unterstützung bei der Umsetzung innovativer Geschäftsmodelle zu gewährleisten.

Tags: AnalyseAutomationBeratungBlockchainComplianceContractContract designContractsGDPRGrowthInnovationLawyerLegal challengesPrivacyRisk ManagementSmart contractStartupsVerträge

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  • Informationen
    • Ideal partner
    • About lawyer Marian Härtel
    • Quick and flexible access
    • Principles as a lawyer
    • Why a lawyer and business consultant?
    • Focus areas of attorney Marian Härtel
      • Focus on start-ups
      • Investment advice
      • Corporate law
      • Cryptocurrencies, Blockchain and Games
      • AI and SaaS
      • Streamers and influencers
      • Games and esports law
      • IT/IP Law
      • Law firm for GMBH,UG, GbR
      • Law firm for IT/IP and media law
    • The everyday life of an IT lawyer
    • How can I help clients?
    • Testimonials
    • Team: Saskia Härtel – WHO AM I?
    • Agile and lean law firm
    • Price overview
    • Various information
      • Terms
      • Privacy policy
      • Imprint
  • Services
    • Support and advice of agencies
    • Contract review and preparation
    • Games law consulting
    • Consulting for influencers and streamers
    • Advice in e-commerce
    • DLT and Blockchain consulting
    • Legal advice in corporate law: from incorporation to structuring
    • Legal compliance and expert opinions
    • Outsourcing – for companies or law firms
    • Booking as speaker
  • News
    • Gloss / Opinion
    • Law on the Internet
    • Online retail
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    • Blockchain and web law
    • Data protection Law
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