Smart contracts in light of the provisions of Islamic jurisprudence and the civil law of Jordan

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Abstract

This study deals with a new technology in contracting, resulting from the information technology (IT) revolution in the field of electronic transactions, which is called “smart contracts”. The latter has constituted a breakthrough in the field of contracting since it provides automation, which underlies many advantages for contractors, so that the software works of smart contracts provide immediate and automatic execution of the contract, which provides speed of implementation and security from manipulation after concluding the contract. So, it provides elements of technical security and trust for this type of contract. This new contractual pattern is considered one of the first in the provisions of Islamic Sharia, which urges us to know the extent of its compatibility with its contracting system. The study concluded with several recommendations, the most significant being that international accords lack comprehensive legislation governing transactions executed through smart contracts. While they contain certain restrictions about contracts formed through contemporary electronic methods, they inadequately elucidate the characteristics of such contracts and examine their specifics. The legal issues associated with smart contracts stem from their connection to digital currency, which is banned by Sharia law.

Keywords: Smart Contract, Blockchain, Islamic Jurisprudence, Civil Law, Electronic Transactions

Authors’ individual contribution: Conceptualization — L.A.-K., T.A.-B., A.S.A.-F., and O.A.-H.; Methodology — L.A.-K., T.A.-B., and A.S.A.-F.; Writing — Original Draft — L.A.-K., A.S.A.-F. and O.A.-H.; Writing — Review & Editing — L.A.-K., A.S.A.-F., and O.A.-H.; Project Administration — L.A.-K., A.S.A.-F., and O.A.-H.; Supervision — L.A.-K., A.S.A.-F., and O.A.-H.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: H11, K40, K49

Received: 04.05.2025
Revised: 13.07.2025; 19.09.2025
Accepted: 10.10.2025
Published online: 14.10.2025

How to cite this paper: AL-Khalaileh, L., Al-Billeh, T., Al-Findi, A. S., & Al-Hailat, O. (2025). Smart contracts in light of the provisions of Islamic jurisprudence and the civil law of Jordan [Special issue]. Corporate Law & Governance Review, 7(3), 180–189. https://doi.org/10.22495/clgrv7i3sip3