Evaluation of Smart Contracts Dissolution due to Termination with Statutory Options

Alsharif, Ali; Alsharif, Mohammadmehdi

doi:10.48308/eclr.2026.239631.1164

Evaluation of Smart Contracts Dissolution due to Termination with Statutory Options

Document Type : Original Article

Authors

Ali Alsharif ¹ ^¶

Mohammadmehdi Alsharif ²

¹ L.L.M Student, Faculty of Law & Political Science, University of Tehran, Tehran, Iran Corresponding Author Email: alialsharif1380@gmail.com

² Associate Professor, Faculty of Administrative Sciences & Economics, University of Isfahan, Isfahan, Irann

https://doi.org/10.48308/eclr.2026.239631.1164

Abstract

“Smart contracts” are among the achievements of the rapid advancement of technology in various fields of human life, particularly in the domain of legal relations in recent decades. These contracts are self-executing agreements based on blockchain software systems, with their terms expressed in computer code. Smart contracts are characterized by features such as inflexibility and automatic execution. Given these characteristics, it might be assumed that there is no room for the existence or exercise of options (khiyārāt) especially those granted by law within such modern forms of contracts. This article addresses the potential issues and challenges related to the termination of smart contracts due to the exercise of legal options, critically analyzing the possible views surrounding this matter. It concludes that, under Iranian civil law and Imamiya jurisprudence, the aforementioned features of smart contracts do not preclude the establishment or exercise of either legal or contractual options. No fundamental or significant difference can be found between smart contracts and traditional contracts with respect to termination through options. However, this does not rule out the possibility that, in some smart contracts and depending on the specific circumstances of each transaction, the parties may have implicitly waived some or all of their options — a phenomenon that is natural in any transaction.

Keywords

Smart Contract

Blockchain

Option (Khiar)

Rescission

Termination

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