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How Does the Governing Law of a Jurisdiction Apply to a Globally Executed Smart Contract?

Governing law is uncertain; courts may look to the location of parties, developers, or where effects are felt.
Greeks.Live09.11.25

How Does the Governing Law of a Jurisdiction Apply to a Globally Executed Smart Contract?

Determining the governing law for a globally executed smart contract is complex due to its borderless nature. Traditional 'choice of law' clauses can be included in an off-chain legal wrapper.

Without one, a court might look to the location of the parties, the server, the developer, or the jurisdiction where the contract's effects are felt. This legal uncertainty is a major hurdle, as different laws may apply simultaneously, creating potential conflicts.

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