Ukraine: Can Smart Contracts be Nullified?

The smart contract must meet the existing requirements for similar electronic documents. If the conditions of a smart contract are contrary to the basic norms of the Commercial Law (Article 180) and the Civil Code (Articles 215-218, 631), it can be nullified.

The consequences can be determined on the basis of the program code: blocking transaction or services, or the occurrence of a legal fact (insurance case, change in price, fines and penalties). Also, Article 216 of the Civil Code states that an invalid deal (transaction) does not create legal consequences, that is, its parties have neither rights nor obligations. If the participants of the transaction have already made some actions before the transaction is recognized as invalid (transfer of goods, pay money, etc.), then all received on the invalid transaction must be returned to the other party or reimbursed with money.


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