Description: Will in the context of smart contracts refers to the willingness of the parties to enter into an agreement or contract. This concept is fundamental in both legal and technological fields, as it establishes the foundation upon which contracts are built. Will implies that both parties have reached a mutual understanding and agreed upon the terms and conditions of the contract, which legally binds them. In the case of smart contracts, which are self-executing programs on a blockchain, will translates into the encoding of those terms in a programming language. This ensures that the agreed conditions are automatically fulfilled without the need for intermediaries. Will not only refers to the intention of the parties but also to their legal capacity to enter into the contract, which includes aspects such as competence, absence of consent vices, and legality of the contract’s object. In summary, will is an essential element that guarantees the validity and execution of contracts, both in traditional and digital realms.
History: The concept of will in contracts has evolved since ancient legal systems, where the importance of the parties’ intention in forming agreements was recognized. Over time, contract laws have adapted to societal needs, incorporating principles such as informed consent and legal capacity. The advent of smart contracts in the 1990s, proposed by Nick Szabo, marked a milestone in the history of contractual will by transferring this concept to the digital and automated realm.
Uses: Smart contracts are used in various applications, such as supply chain management, execution of financial agreements, and automation of legal processes. They allow parties to set clear conditions and automatically execute actions when certain criteria are met, reducing the need for intermediaries and increasing efficiency.
Examples: A practical example of a smart contract is a loan agreement where, upon meeting the agreed conditions, money is automatically transferred from a lender to a borrower. Another example is the sale of digital goods, where ownership transfer occurs automatically once payment is received.
