For EU regulation, please visit Europe: How is Dispute Resolution Integrated

Although there is no official statement on smart contracts in Sweden presently on offer, the Swedish government is currently using smart contracts in a real estate land registries project. As Sweden has not yet defined smart contracts, please see the EU section since EU law applies.

As a general note, despite certain advantages of smart contracts, they are not free from disputes arising in relation to their performance. There are several potential types of disputes–a party may, for example, contest whether a smart contract is in fact legally binding, disagree as to which jurisdiction’s law is the governing law, or allege misconduct and seek damages.

Given the lack of a central enforcement agency and established precedent, it is difficult to predict with certainty how such issues will be dealt with and resolved. It is therefore advisable that parties include a dispute resolution or arbitration clause when contracting via a smart contract.

Sources

• Blockchain Smart Contracts