Choice Of Law In Cross-Border E-Contracts And Smart Contracts
- IJLLR Journal
- 2 hours ago
- 2 min read
Thenmozhi G, LL.B. (Hons.), Vinayaka Mission’s Law School (VMLS), Chennai
Mahendiran V, LL.B. (Hons.), Vinayaka Mission’s Law School (VMLS), Chennai
ABSTRACT
The rapid growth of digital commerce and blockchain technology has transformed the way commercial agreements are formed and executed in different jurisdictions across the borders. The electronic contracts (e- contracts) and smart contracts are making transactions easier between the two parties who are in different jurisdictions. However, the e-contracts and smart contracts are much easier to use compared to the traditional method, but this digital transaction raises more complex legal questions like relating to jurisdiction, governing law, enforceability, and evidentiary validity of the contract. Traditional legal frameworks developed related to territorial transactions, whereas modern electronic agreements often operate simultaneously across multiple legal systems of different countries. Consequently, determining which country’s law applies to cross-border electronic contracts and smart contracts has become a critical issue in Private International Law.
The research paper examines the doctrine of choice of law in cross-border electronic contracts and smart contracts. It analyzes how the courts were determining the applicable law governing agreements formed through digital platforms, automated systems, and blockchain technology based protocols. While most of the countries legally recognized electronic contracts under the existing contract laws.
The study further explores the situations in which no governing law is expressly specified in an electronic agreement. In those situations, courts rely on existing conflict of law principles and the proper law of the contract. However, finding these connecting factors becomes difficult in online environments because contract formation, performance, and digital infrastructure may span multiple jurisdictions. Furthermore, the evidentiary value of electronic data records and blockchain entries is examined in the context of cross border disputes.
An international comparative study of the legal system highlights diverse regulations concerning electronic and blockchain, based contracting. The study also looks at the role of international instruments, particularly UNCITRAL model laws, in promoting harmonization of electronic commerce. The research finds that even though the existing contract law and private international law recognized electronic contracts (e-contracts) and smart contracts, clearer rules on applicable domestic law, jurisdiction, and enforceability, there is a need for more provisions to ensure legal certainty in cross border digital transactions and contract disputes.
Keywords: Choice of Law - Electronic Contract (e-contract) - Smart Contract - Block Chain Technology - Private International Law - Jurisdiction - Electronic Evidence - Cross border Digital Transactions.
