BlockchainLab #2: SMART CONTRACT AND NATURAL LANGUAGE PROCESSING

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BlockchainLab #2: J.G Allen: Wrapped and Stacked: ‘Smart Contracts’ and the Interaction of Natural and Formal Language

We will discuss the paper presented by J. G Allen

Monday March  11/2019, 3pm-4.30pm, HEC Paris, 1 rue de la Libération 78351 Jouy-en-Josas

Comments by: Prof. Michalis Vazirgiannis, Ecole Polytechnique, Laboratorie d’Informatique, DaScim

& Prof. David Restrepo, Law&Tax Department, HEC Paris, SmartLawHub

Seminar jointly organized by the BlockchainLab at HEC Paris & the EDGAM project at Sciences Po Law School

This article explores ‘smart contracts’ from first principles: What they are, whether they are properly called ‘contracts’, and what issues they raise for national contract law. A ‘smart’ contract purports to record contractual promises in language which is both intelligible to human beings and (ultimately) executable by machines. The formalisation of contracting language that this entails is, I argue, the most important aspect for lawyers—just as important as the automation of contractual performance. Rather than taking a doctrinal approach focused on the presence of traditional indicia of contract formation, I examine the nature of contracts as legal entities created by words and documents. In most cases, smart contracts will be ‘wrapped in paper’ and nested in a national legal system. Borrowing from the idiom of computer science, I introduce the term ‘contract stack’ to highlight the complex nature of contracts as legal entities incorporating different ‘layers’, including speech acts by the parties in both natural and formal languages as well as mandatory legal rules. It is the interactions within this contract stack that will be most important to the development of contract law doctrines appropriate to smart contracts. To illustrate my points, I explore a few issues that smart contracts might raise for English contract law. I touch on the questions of illegality, jurisdiction, and evidence, but my focus in this paper is on exploring issues in contract law proper. This contribution should be helpful not only to lawyers attempting to understand smart contracts, but to those involved in coding smart contracts—and writing the languages used to code them.

Register by sending an email to Olfa Mzita : mzita@hec.fr

BlockchainLab #1 SMART CONTRACT AND LEGAL ENGINEERING with Andrea Leiter | Feb. 15th | 10am | HEC Paris

blockchainlab

BlockchainLab #1 SMART CONTRACT AND LEGAL ENGINEERING

We will discuss the paper presented by

Andrea Leiter :

Legal Engineering on the Blockchain: ‘Smart contracts’ as legal conduct.

Thursday February 14, 10 am. HEC Paris

A new legal field is emerging around blockchain platforms and automated transactions. Understanding the relationships between law, legal enforcement, and these technological systems has become critical for scaling blockchain applications. Because ‘smart contracts’ do not themselves constitute agreements, the first necessary ‘legal’ development for transacting with these technologies involves linking computational transactions to natural language contracts. Various groups have accordingly begun building libraries of machine readable transaction modules that correspond to natural language contracting elements. In doing so, they are creating the building blocks for ever more complex transactions that will ultimately define the entire envelope of computational legal conduct in these environments, and likely standardise the field. However, also critical to emerging blockchain ‘legalities’, is the capacity for dispute resolution and legal enforcement. Beyond the performance of parties, or the quality of goods and services transacted, new mechanisms are also needed to address the performance of the computational transaction systems themselves. These are necessary to address the reality that smart contracts cannot be forced to perform actions beyond the parameters of their coding, even by a judicial order. Legal tools, both technological and institutional, are thus being developed to ‘soften’ the effects of self-executing transactions. In this article we treat these developments as law-making practices that are constitutive of an emerging legal field. Legal engineering exercises of this kind are not novel, and by drawing on historic examples from the common law and international arbitration, we gain insights into the competitive dynamics likely to be shaping legal engagements on the blockchain.

Register HERE