All posts tagged Smart legal contracts
Evolving your procurement strategy with relational contracts can be used to increase contract standardization and visibility across the entire supply chain – ensuring contracts are managed appropriately to secure supply and value for the organization.
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Blockchain gave rise to the concept of smart contracts; legal agreements programmed, executed and automated in computer code. While the automation associated with smart contracts has proceeded, legal standards supporting that automation have been slow to emerge. Legal practices who want to adopt this new technology need to be aware of the essentials for smart legal contracts drafting.
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Since the global financial crisis in 2008, economists started to rethink alternative and new forms of cooperation and economic systems capable of cutting off third-party intermediaries and ensuring direct interaction between peers. The digital revolution has triggered a disruptive diffusion of the internet, technology, online communities, and new technological platforms. The sharing or collaborative economy is one economic system where assets and services are shared between private individuals and it is often facilitated by an online platform. Solutions based on blockchain technology as Smart contracts have started growing.
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Sales success requires a great deal of planning. From identifying and nurturing leads to renewing and retaining existing customers. While CRM platforms have managed to enhance sales efficiency and provide visibility, there’s still room for improvement.
We already know how essential business documents are for the multitude of tasks that distract reps from selling. Documents connect every area of a business and enable information sharing across departments. They’re also the source of almost all sales-related work and day-to-day tasks: 50% of knowledge workers’ time is spent creating and preparing documents, and 92% of professionals still collaborate on and review documents by email.
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As declared many times, our objective is to diffuse a Smart Legal Contract framework to facilitate compliance and control with less overhead. Smart legal contract are automating controls and increase the efficiency of companies.
As we know contracts often include collateral or penalties for non-compliance. The purpose is to make the possibility of fulfillment of the contract more likely. Sometimes the lawyer’s creativity in securing the other party’s compliance is noteworthy!
I was so impressed and amused to discover how a rock band (Van Halen, to be precise) used candy to show whether a contract had been carefully read and, therefore, whether the band’s complex, and potentially dangerous, technical requirements were likely to have been met!
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The concept of a ‘smart legal contract’ is an inseparable part of discussions about the future of legal practice. The offerings that technology can provide to streamline legal services for businesses are truly invaluable.
The obvious question must be, what is the difference between a smart contract VS smart legal contract?
We will look into various aspects of smart contracts and smart legal contracts and try to reach a conclusion and hopefully, you would understand what the major differences are.
Exactly what a smart legal contract looks like, the nature of its capabilities and potential applications in practice have remained relatively obscure. This article will revisit basic concepts of smart legal contracts, explore a current case study, acknowledge hurdles to wider use and address future possibilities.
Smart legal contracts are different from the so-called “smart contracts”, which are self-executing scripts that necessarily operate on a blockchain system. Smart contracts may form part of a smart legal contract or smart document but do not represent the agreement in its entirety.
Fundamental to the concept of a smart contract, and the main driver of efficiency through faster processing times is the automatic performance of aspects of the contract without the need for human action or verification. A foreseeable outcome of this is lower transaction and operating costs compared to traditional contracts.
However, it is not just about efficiency. Smart legal contracts can also provide greater certainty and trust between the parties, particularly when incorporating blockchain or other distributed ledger elements which ensure the immutability of input data.
Smart legal contracts contain natural language text with relevant provisions of the document drafted in machine-executable components, that is, programmable code. The programmable elements interface with external sources of data (so-called “oracles”) (such as Internet of Things device data) or other software systems. The oracles drive the real-time status of the contract, for example, by enabling clauses to self-execute if the external data shows that specified contract conditions are met. The contract sits in a real-time digital environment – a website, platform or app – that each party can log in to and view the current status of any relevant terms.
The creation of smart legal contracts also requires a multi-disciplinary approach. Both lawyers and coders must understand and respect the other’s role and work collaboratively to achieve an effective design.
Standards can also play an important role in promoting the uptake of innovative technologies and have a role to play with the adoption of smart legal contracts.
“Standards and other publications…can improve the reputation of innovative technologies and lead the way in describing best practice. Developing and setting standards requires consensus, which encourages an international community of experts to share, collaborate and agree.”
If we want to see wider adoption of smart contracts and smart legal contracts, we need an effective governance framework via the further development of international standards. Governments and companies have significant potential to grow awareness about, confidence in and legitimacy of smart contracts in both the public and private sectors. This is particularly the case given the cross border nature of smart legal contracts, which can make it difficult for sovereign legislators to regulate them.
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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. Same with the smart contracts.
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.
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