There is some debate as to whether a smart contract
fulfils the requirement that a contract must be signed. The debate
centralises on the issue of when the private key (used in lieu of a
traditional signature) is applied. It is done with the necessary
intention to authenticate the document. Further as the document
would be signed by a key rather than a named individual, it permits
contracting parties to remain anonymous to one
another.
Are smart contracts practical?
Just as there is an endless number of use cases for smart
contracts, there is an endless number of situations in which smart
contracts are not practical.
For example:
- Contracts often use terms that are ambiguous, such as
‘sufficient cause', ‘reasonable efforts' or
‘best efforts.' One party might believe that the
‘reasonable efforts' threshold is met, while the
counter-party disputes that idea. A smart contract is not reliably
capable of this type of determination.
