Smart contracts from the perspective of Kuwaiti law

الملخص EN

When working with another contracting party, one of the most significant problems that parties face is a lack of trust.

Contracting parties exercise caution and spend time and money on intermediaries while finalizing contracts due to a lack of trust and transparency.

Smart contracts, a blockchain-based technology, may be able to address these issues.

They enable the creation of contracts that are automated and immutable.

This research examines whether or not smart contracts adhere to the Kuwaiti legal regime of traditional contracts.

We found that smart contracts, for the most part, follow the same rules as traditional contracts in terms of formation and dissolution.

However, because of their unique characteristics, such as automation and digitalization, smart contracts may face challenges such as irreversibility.

The study recommends that Kuwaiti legislative intervention is required to account for the unique characteristics of smart contracts.

This will lead to the desired outcome of promoting these contracts and therefore of business.