BEYOND TRADITIONAL CONTRACTS: SMART CONTRACTS AND THE TRANSFORMATION OF INDIAN COMMERCIAL LAW
AUTHOR – BAIBHABA CHINHARA, LLM STUDENT, G.M. LAW COLLEGE, SRI VIHAR, PURI
BEST CITATION – BAIBHABA CHINHARA, BEYOND TRADITIONAL CONTRACTS: SMART CONTRACTS AND THE TRANSFORMATION OF INDIAN COMMERCIAL LAW, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (10) OF 2026, PG. 81-100, APIS – 3920 – 0001 & ISSN – 2583-2344. DOI – https://doi.org/10.65393/IJLRV6I1011
ABSTRACT
The digital transformation of commerce has introduced smart contracts—self-executing, code-based agreements on blockchain infrastructure—that challenge traditional legal doctrines by automating performance and minimizing intermediaries. While gaining global traction across finance and supply chains, their legal status within Indian commercial law remains doctrinally fragmented. This article critically examines whether existing Indian statutory frameworks, particularly the Indian Contract Act, 1872, and the Information Technology Act, 2000, can accommodate these blockchain-enabled arrangements. It interrogates foundational legal questions surrounding automated offer and acceptance, algorithmic consent, the enforceability of self-executing obligations, and the evidentiary admissibility of decentralized records. Furthermore, the study analyzes the technological anatomy of smart contracts, distinguishing between legal contracts expressed in code and autonomous software protocols, to highlight legal complexities that conventional doctrines fail to address. Through a comparative examination of regulatory developments in the US, UK, Singapore, EU, and UAE, the article highlights an international movement toward the formal recognition of blockchain contracting. Against this backdrop, it argues that India’s existing legal framework, though interpretively flexible, is structurally inadequate for resolving the jurisdictional, liability, and consumer protection challenges posed by algorithmic transactions. The study concludes that smart contracts necessitate a paradigm shift in commercial jurisprudence. India must move beyond mere interpretive accommodation and develop a coherent legislative architecture that balances technological innovation with legal certainty, contractual fairness, and commercial accountability.
Keywords: Smart Contracts; Indian Contract Law; Blockchain Technology; Algorithmic Transactions; Commercial Jurisprudence; Digital Contracts.