Ensuring the principle of freedom in recognising the legality of smart contracts in Vietnam

Abstract

Smart contracts using blockchain technology not only have significant potential but also face legal challenges in Vietnam, particularly in ensuring the principle of contractual freedom. Issues related to entering, performance, and termination of smart contracts call for an appropriate legal framework to minimise risks and maximise benefits. This article analyses the compatibility of smart contracts with the principle of freedom of contract and identifies areas of incompatibility, such as difficulties in determining the genuine consent of the parties and the limited ability to modify or terminate the contract in extenuating circumstances. Based on this analysis, the article proposes several legal recommendations, including the development of a dedicated legal framework for smart contracts, the integration of flexible clauses into the programming code, and the enhancement of dispute resolution mechanisms, with the aim of safeguarding the right to contractual freedom in a digital and technology-driven environment