Smart Contract Implementation

In this casesmart contractcan be carried out without a third party, then the transactions carried out can be tracked and cannot be changed. Generally, the parties in making a conventional contract in making changes (addendum) if there are changes to the clauses or contents of the agreement that are deemed necessary to be changed. The character of this agreement is to legally bind the parties to carry out both rights and obligations with Predetermined limitations.

The hallmark ofsmart contractthis has a risk where the recipient only receives and the dominant giver determines the contents or clauses in the agreement that. In this case, there is an indication that there is no implementation of the principle of freedom of contract between the parties in making an agreement so that potential losses will be received by the recipient if the dispute occurs. Freedom of contract, which is the "spirit" and "breath" of a contract or agreement, implicitly provides guidance that in contracting, the parties are assumed to have a balanced position.

Referring to the subjective conditions regarding the validity of the agreement, there must be mutual “agreement” with each other. According to Article 1338 Civil Code (KUHPerdata) that “all agreements legally made apply as law to those who make them”. Therefore, legally an agreement will be aligned with the force of law that will protect the parties. If it is connected with this Smart Contract, in practice it can execute the provisions in the contract automatically without the need for manual human intervention.

First, in carrying out an agreement, human intervention or legal subject must be carried out in order to provide space or opportunity for what things must be done and avoided. Because, the majority of contract disputes occur due to a lack of understanding from one of the parties or the dominant high position of one of the parties so that there is no prior negotiation. In principle, an agreement is formed because of the suitability or conformity of the will of the parties, between the offer (offer) and the recipient (acceptance).

Basically, an agreement is not only made verbally or in writing but can be done through a sign or code. Insmart contract itself, to carry out execution if all the requirements have been met in the agreement. Even though all these requirements have been met, but the contents of the agreement have not been negotiated by the parties, that is where the doubt about the application of the principle of freedom of contract occurs.