# kaal:claim:3405401-008

**Claim.** Because the smart contract removes centralized guarantors and self regulates, only limited legal recourse remains available when execution of the contract terms goes wrong.

**Type.** mechanism  **Support.** argued

**Holds when.**

- something goes wrong in execution of the contract terms

**Source quote.**

> Most importantly, the smart contract removes centralized guarantors. The smart contract self-regulates. Only limited legal recourse is available if something goes wrong in the execution of the terms of the contract.

**From.** Wulf A. Kaal, *Decentralized Commerce – A Primer on Why Decentralized Reputation Verification Systems Are Needed* (2019), III. Benefits of Smart Contracts, page 5

**Cite as.** Wulf A. Kaal, Decentralized Commerce – A Primer on Why Decentralized Reputation Verification Systems Are Needed (2019). SSRN: https://ssrn.com/abstract=3405401

**Verify.** sha256 of source PDF `bc2d6f0ddc0852fb4085c4543c7c1dec19aaf8745eb67e3acc637e552bd7fb7d` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202019%20-%20Decentralized%20Commerce%20%E2%80%93%20A%20Primer%20on%20Why%20Decentralized%20Reputation%20Verification%20Systems%20Are%20Needed.pdf

**Failure mode.** no-recourse-after-disintermediation  (family: legal-personality-and-liability-gap)

**Topics.** smart-contracts, law-and-legal-systems, decentralization

**Keywords.** smart-contracts, legal-recourse, disintermediation, self-regulation

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/3406323-031

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.