Comparative Analysis of the Validity and Invalidity of Smart Contracts in Imami Jurisprudence, Iranian Law, and the Principles of European Contract Law

Akram Tajik; Ahmad  Mohammad Ghasemi

Authors

Akram Tajik Assistant Professor, Department of Law, Azadshahr Branch, Islamic Azad University, Azadshahr, Iran Corresponding author https://orcid.org/0009-0000-7950-9819
Ahmad Mohammad Ghasemi Department of Law, Go.C. , Islamic Azad University, Gorgan, Iran Author https://orcid.org/0000-0002-7721-8927

Keywords:

Smart Contract, Blockchain, Imamiyah Jurisprudence, Iranian Law, Principles of European Contract Law, Contract Validity

Abstract

Smart contracts, as one of the manifestations of blockchain technology, have brought about a profound transformation in the field of contracts. These contracts, which are executed automatically, have introduced novel challenges within various legal systems. The present study, employing a descriptive–analytical method and a comparative approach, examines the conditions of validity and the grounds for invalidity of smart contracts in three systems: Imami jurisprudence, Iranian law, and the Principles of European Contract Law. The findings indicate that in Imami jurisprudence, smart contracts can be accepted under unnamed contracts based on the general evidences of the validity of transactions and principles such as the presumption of validity. In Iranian law, Article 10 of the Civil Code, along with the Electronic Commerce Law, provides sufficient capacity for the validation of such contracts. In the Principles of European Contract Law, with an emphasis on the principle of freedom of contract and party autonomy, smart contracts are considered valid provided that the essential conditions of validity are fulfilled. Nevertheless, common challenges exist, including the verification of parties’ legal capacity in digital environments, the realization of valid offer and acceptance, the determination of the subject matter of the contract, and the applicability of options (khiyarat) in such agreements, all of which require reconsideration and modernization of existing regulations. This study emphasizes the necessity of developing a coherent legal framework for smart contracts through an integrative approach combining Islamic jurisprudential-legal foundations and the achievements of advanced legal systems.

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