kaal:claim:5554218-006

Physical goods cannot be fully governed by code, so contracts requiring tangible performance need external mechanisms to verify compliance, and smart contracts may therefore fail to satisfy the consideration requirement in such contexts.

Unlike digital assets, physical goods cannot be fully governed by code, requiring external mechanisms to verify compliance with contractual terms. This limitation suggests that smart contracts may struggle to fulfill the consideration requirement in contexts requiring tangible performance,

Furrer Andreas, Wulf A. Kaal, Universal Digital Law Codex (UDLC) Building the Legal Infrastructure for the Digital Era (2025), 2.1.2 Consideration and Economic Viability, p. 7
https://ssrn.com/abstract=5554218 · source PDF

Furrer Andreas, Wulf A. Kaal, Universal Digital Law Codex (UDLC) Building the Legal Infrastructure for the Digital Era (2025). SSRN: https://ssrn.com/abstract=5554218

• sales contracts requiring transfer of physical possession
• contracts involving tangible rather than purely digital assets

failuresupport: arguedfailure: Code cannot govern tangible performancefamily: oracle-and-input-corruptionsmart-contracts

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