# kaal:claim:5554218-008

**Claim.** The adaptability of common law to smart contracts is strained when the coded mechanism itself violates a legal norm, as with smart contracts that enable automatic collateral repossession contrary to the Uniform Commercial Code's restrictions on strict foreclosure.

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

**Holds when.**

- smart contracts automating self help remedies
- United States secured transactions law under the UCC

**Source quote.**

> However, this adaptability is strained when smart contracts, such as those enabling automatic collateral repossession, violate legal norms like the UCC's restrictions on strict foreclosure.

**From.** Furrer Andreas, Wulf A. Kaal, *Universal Digital Law Codex (UDLC) Building the Legal Infrastructure for the Digital Era* (2025), 2.1.3 Enforceability and External Intervention, page 8

**Cite as.** 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

**Verify.** sha256 of source PDF `55738b4035a91b70aa2ddaa127552fe4b373ec641afee2719fbdcabebdcbea44` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Andreas%20and%20Kaal%20-%202025%20-%20Universal%20Digital%20Law%20Codex%20%28UDLC%29%20Building%20the%20Legal%20Infrastructure%20for%20the%20Digital%20Era.pdf

**Failure mode.** Automated self help violates mandatory remedy rules  (family: smart-contract-rigidity)

**Topics.** smart-contracts

**Keywords.** ucc, strict-foreclosure, collateral, smart-contracts, common-law

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