Code as Contract Theory

Code as Contract Theory posits that the source code of a smart contract should be considered the definitive and binding agreement between all participating parties. This view argues that since the code is immutable and self-executing, it removes the need for traditional legal interpretation and enforcement.

However, this theory is frequently challenged when the code contains unintended vulnerabilities or produces outcomes that are fundamentally unfair or illegal. Critics argue that code cannot capture the nuances of human intent, and therefore, legal systems must retain the authority to override the code in cases of error or malicious activity.

This debate is at the heart of the evolution of blockchain law, as it determines whether developers can be held liable for the results of their code. The tension between technical determinism and legal discretion remains a central theme in the regulation of programmable money.