Skip to main content

How Does Immutability Affect the Legal Enforceability of a Contract?

Immutability enhances the technical enforceability of the coded terms, as the execution is guaranteed. However, it complicates the legal enforceability because traditional legal systems rely on human interpretation and modification.

An immutable contract offers no mechanism for a court to unilaterally change the terms or reverse an erroneous transaction. The legal system is still determining how to treat an immutable, self-executing agreement in cases of dispute or unforeseen circumstances.

What Is the Concept of ‘Delivery Squeeze’ in Commodity Futures and Can It Apply to Crypto?
Why Is the Immutability of an Options Contract Record Crucial for Financial Derivatives?
In the Event of a Cryptocurrency Theft, How Does the Immutability of the Blockchain Both Help and Hinder the Recovery of Funds?
What Is the Difference between a Stop-Loss Order and a Stop-Limit Order in Crypto Trading?