Chile: Can Smart Contracts be Nullified?

Although there is no official statement on smart contracts in Chile presently on offer, the Chilean government is currently using smart contracts in a nation-wide energy project. As Chile has not yet defined smart contracts, please keep attuned to ongoing discussions.

Literature on smart contracts currently lacks a discussion of the legal implications nullification and immutability, especially of those use cases that are unrelated to contract law. As a general note, despite certain advantages of smart contracts, they are not free from disputes arising in relation to their performance. 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.

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