Reading time: 3 minutes.
Smart contacts are a great way of helping you exchange property, money, and shares without the fees, hassle, and services that come along with them. For example, when you go up to a vending machine, all you need to do is drop the money in and the snack or drink comes out.
A smart contract works the same way – all your need is to have the required token into the wallet and whatever you have paid for automatically gets deposited into the recipient account, making it so much easier and more efficient than a traditional contract.
While it looks easy, these contracts come with certain rules and regulations to automate execution in case you break the agreement. Now with smart contracts, they are converted into certain codes online and once you have finalized the agreement you cannot go back nor can the contract be changed, unlike in the case of traditional contracts.
This feature reduces drastically the chances of debate upon a clause. A smart contract, in order to be adequately functional, must have clear and defined parameters to execute the actions it must perform. So ambiguity is not allowed unless you apply some tricks (to dig further into contract’s and smart contract’s flexibility click here).
A guide to smart contracts
Let’s say you want to buy a cool artwork minted as Non Fungible Token or NFT from your friend and both of you agree to the payment terms and conditions negotiated in a Smart Legal Contract in Trakti. Soon after the smart legal contract is signed by both of your wallets the transfer is activated by the smart contract automatically. The smart contract program contains all the terms of the agreement along with the payment processes, conditions, and terms agreed during the negotiation. Once the contract is activated and the payment is transferred, the NFT will automatically move from your friend’s account to yours with no hassle at all.
Our smart legal contract end to end platform allows the sale of the digital assets to be kept between two people instead of involving a broker, the court, lawyers, or even banks which makes it affordable.
How are smart contracts useful?
Smart legal contract management can be useful for a variety of purposes, right from government bodies to supply chains, as they are fairly useful and simple and can ensure that the final contract is secure, transparent, and accurate without any communication errors. This helps to maintain agreements between two parties and reduce any chances of fraud or even loss.
When you enter into this contract, you can be sure that it’s trusted, safe, affordable, and reliable and that you and the other party need to keep to the terms of the agreement. This not only allows things to go smoothly but also eliminates all chances of human errors and misunderstandings. I
t’s perfect for your business needs and legal agreements.
While smart legal contracts are reliable, accurate, and easy, you still need to make sure you go through all the terms and conditions before you draw one up. Once it’s final these documents are tamper-proof and do not allow you to edit them or back out. So make sure you define every ambiguous term in the contract to get the program to execute all necessary actions and improve your relationship with the other party/parties!
Ready to see what else smart contracts can do for you? Contact us or Click here!