# kaal:claim:3405401-017

**Claim.** Smart contracts leave counterparty information asymmetries unresolved: the tenant of a smart property cannot fully know whether the landlord is providing a worthy property, and the landlord cannot know in advance how likely the tenant is to destroy the premises.

**Type.** failure  **Support.** argued

**Holds when.**

- smart property rental scenario

**Source quote.**

> In our example above, the tenant of the smart property cannot fully know if the landlord is providing a worthy property. In turn, the landlord cannot know in advance how likely the tenant will destroy the premises.

**From.** Wulf A. Kaal, *Decentralized Commerce – A Primer on Why Decentralized Reputation Verification Systems Are Needed* (2019), V. Trust Problem, page 6

**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.** unresolved-information-asymmetry  (family: information-asymmetry)

**Topics.** disclosure, reputation, risk-and-incentives

**Keywords.** information-asymmetry, smart-property, trust, counterparty-risk

**Related claims.**

- contests: https://wulfkaal.github.io/claims/3373393-026

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