Smart contracts
Smart contracts are code-based execution mechanisms whose legal effect depends on contract formation, interpretation, consumer rules, errors and remedies.
A smart contract is not automatically a contract in the legal sense; it is software that executes predefined instructions, often on a blockchain. Legal analysis asks whether parties reached valid consent, what off-chain terms apply, how code errors or oracle failures are treated, and which remedies remain available after automated performance. In Switzerland, general contract principles, financial regulation, data protection and consumer rules may all matter. Good practice separates legal terms from code specifications, defines governance for upgrades and allocates risks of bugs, hacks and irreversible transfers.