As for August 2018, the term “smart contract” has not been defined in Ukrainian legal system yet. However, according to The law of Ukraine No. 675-VIII, “On E-Commerce” of 03.09.2015, Article 3.13 :
Such “smart contract” can be formed as freezing of funds in the payer’s account and their an automatic transaction to the recipient at certain conditions. This may require a financial institution (bank) as the intermediary, and an electronic form of contract, which, for example, may be signed by an individual’s “disposable electronic ID” (as in Article 3.13).
Thus, we have a contract that is concluded without the use of paper with an element of automatic performance of certain actions in the event of the circumstances specified in the contract. Such an agreement may be in the form of a public offer and posted on the website. Therefore, immediately after the signing of the agreement and the execution of certain actions, the algorithm is launched, acting on the principle (if – then) – if a certain circumstance occurs, there is a corresponding action with the funds in the Bank account of one of the parties to the agreement.
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