Smart contracts, self-executing protocols on blockchain platforms, challenge traditional contract law by automating performance without intermediaries. This doctrinal study examines their enforceability under Indian statutes, particularly the Indian Contract Act, 1872, and the Information Technology Act, 2000. The research problem centres on whether code-based agreements satisfy essential elements like offer, acceptance, free consent, and lawful consideration, amid ambiguities in evidentiary admissibility and remedies. Objectives include analysing statutory compatibility, identifying doctrinal gaps, and proposing reforms. Through examination of sections 10, 13-14, and 10A of relevant Acts, alongside judicial precedents on electronic contracts, findings reveal partial recognition: smart contracts qualify as valid if hybrid (code plus natural language) and digitally signed, but pure code versions face hurdles in proving intent and consent. Key challenges encompass immutability conflicting with revocation rights and cross-border jurisdiction issues. The study recommends legislative amendments for explicit recognition, judicial guidelines for code interpretation, and regulatory sandboxes. Ultimately, smart contracts hold transformative potential for India's digital economy if integrated via interpretive evolution and targeted reforms, balancing innovation with legal certainty.
Jagota et al. (Tue,) studied this question.