Enforcing Code: Doctrinal and Practical Remedies for Smart Legal Contracts in Pakistan

Abstract

Smart legal contracts, which are self-executing programs encoded on blockchain technology, fundamentally transform the formation, performance, and enforcement of contractual agreements by automating obligations in an immutable and decentralized environment. This study critically examines the extent to which Pakistan’s existing contract law framework—primarily governed by the Contract Act, 1872—can effectively address disputes arising throughout the entire lifecycle of smart legal contracts, from their initial formation and validity to their automated execution and potential termination. Employing doctrinal legal research and deductive reasoning, the paper systematically evaluates the applicability and limitations of traditional contractual remedies—including damages, specific performance, rescission, rectification, restitution, and termination—in the context of blockchain’s technical characteristics, such as immutability, irreversibility of transactions, and the absence of intermediary control. The analysis reveals that while the deterministic and tamper-proof nature of blockchain poses significant challenges to conventional judicial intervention (particularly in cases requiring alteration or reversal of executed code), many disputes remain amenable to resolution under existing Pakistani law, provided courts recognize the dual nature of smart legal contracts as both code and legally binding agreements. Ultimately, it concludes that a balanced combination of carefully designed smart contract architecture (incorporating contingency logic and upgradeability features) and flexible, technology-aware judicial remedies can bridge the gap between blockchain’s rigidity and the equitable demands of contract law, thereby ensuring access to meaningful justice in Pakistan’s evolving digital economy.