Journal of Digital Technologies and Law (Jul 2024)
Configuration of Incoterms into Smart Contracts: a View of International Sales Contracts through a Futuristic Periscope
Abstract
Objective: to identify the prospects of international trade in the light of synchronizing Incoterms with smart contracts.Methods: the study is based on the general scientific methods of analysis, synthesis, comparison, and formal-legal method necessary to analyze the provisions of Incoterms.Results: the authors analyzed the provisions of Incoterms and technological innovations in commercial law; showed the connection between the practice of commercial law and technological development due to the inclusion of contractual terms in blockchain. It is noted that the integration of blockchain technology with smart contracts has led to a variety of automated business transactions and the creation of a platform for synthetic assets trading. The authors describe the possibilities of secure and easy transactions in international trade using blockchain. Despite the uniqueness of this technology, its different types are distinguished, namely: public, private, hybrid, and consortium blockchain. It is substantiated that the synchronization of Incoterms with smart contracts can improve the prospects of international trade (especially export-import contracts). It is emphasized that smart contracts based on blockchain can revolutionize the application of Incoterms, consequently increasing the efficiency of transactions between parties to export-import relationships. One of the fundamental changes that smart contracts will bring to these trade transactions is the reduction of errors and misinterpretations of Incoterms. The authors use specific cases to demonstrate disputes arising at the stages of transaction conclusion and execution, which could have been avoided using modern technologies.Scientific novelty: The paper shows the phenomenon of synchronizing Incoterms with blockchain and how it can affect the form of contracts and facilitate their smooth execution. The proposed approach to analyzing the phenomenon takes into account the revolutionary innovations in crossborder trade, which are compared with the usual ways of applying Incoterms in traditional international trade contracts.Practical significance: the research provides suggestions and recommendations for further development of innovations in the field of smart contracts, especially export-import trade contracts on a global scale.
Keywords
