Temporal Aspects of Smart Contracts for Financial Derivatives

Implementing smart contracts to automate the performance of high-value over-the-counter (OTC) financial derivatives is a formidable challenge. Due to the regulatory framework and the scale of financial risk if a contract were to go wrong, the performance of these contracts must be enforceable in law and there is an absolute requirement that the smart contract will be faithful to the intentions of the parties as expressed in the original legal documentation. Formal methods provide an attractive route for validation and assurance, and here we present early results from an investigation of the semantics of industry-standard legal documentation for OTC derivatives. We explain the need for a formal representation that combines temporal, deontic and operational aspects, and focus on the requirements for the temporal aspects as derived from the legal text. The relevance of this work extends beyond OTC derivatives and is applicable to understanding the temporal semantics of a wide range of legal documentation

Semantic Component Composition

Building complex software systems necessitates the use of component-based architectures. In theory, of the set of components needed for a design, only some small portion of them are "custom"; the rest are reused or refactored existing pieces of software. Unfortunately, this is an idealized situation. Just because two components should work together does not mean that they will work together. The "glue" that holds components together is not just technology. The contracts that bind complex systems together implicitly define more than their explicit type. These "conceptual contracts" describe essential aspects of extra-system semantics: e.g., object models, type systems, data representation, interface action semantics, legal and contractual obligations, and more. Designers and developers spend inordinate amounts of time technologically duct-taping systems to fulfill these conceptual contracts because system-wide semantics have not been rigorously characterized or codified. This paper describes a formal characterization of the problem and discusses an initial implementation of the resulting theoretical system.Comment: 9 pages, submitted to GCSE/SAIG '0

Legal Obstacles of Detainees in For-Profit Immigration Detention Facilities

In an effort to reshape the US correctional system, one of President Joe Biden’s first executive orders ended future contracts between the Department of Justice (DOJ) and private prison corporations. Symbolic at best, this left in place the biggest money-maker of the private prison system, private immigration detention facilities. The contracts that guide US Immigration and Customs Enforcement (ICE) facilities favor profit over detainee well-being. This research showcases the poor quality of private immigration detention facilities with a focus on access to legal representation. With financial and physical barriers preventing detainees from receiving legal help, the US detention system works against due process. As contracts under the DOJ were terminated, contracts under the Department of Homeland Security (DHS) and ICE must end in order to see a change in corrections

Public Client Contingency Fee Contracts as Obligation

Contingency fee contracts predicate an attorney’s compensation on the outcome of a case. Such contracts are widely accepted when used in civil litigation by private plaintiffs who might not otherwise be able to afford legal representation. However, such arrangements are controversial when government plaintiffs like attorneys general and local governments retain private lawyers to litigate on behalf of the public in return for a percentage of any recovery from the lawsuit. Some commentators praise such public client contingency fee contracts, which have become commonplace, as an efficient way to achieve justice. Critics, however, view them as corrupt, undemocratic, and unethical. This Comment contributes to this debate by arguing that public client contingency fee contracts are not only permissible, as some have argued, but that certain legal doctrines obligate government entities to form these contracts. First, this Comment contends that the principle that government litigators have a special duty to “seek justice” obligates government actors to enter into public client contingency fee contracts. The obligation to form such contracts is triggered when civil justice requires enforcement, but constraints prevent government attorneys from pursuing litigation. This contention undermines critics’ claim that the “seek justice” principle means public client contingency fee contracts are impermissible. Second, this Comment argues that the public trust doctrine also obliges government entities to form public client contingency fee contracts in some instances. These arguments undermine attacks on public client contingency fee contracts and demonstrate the existence of a heretofore ignored obligation in public civil litigation

On the Optimized Utilization of Smart Contracts in DLTs from the Perspective of Legal Representation and Legal Reasoning

Smart contracts are computer programs stored in blockchain which open a wide range of applications but also raise some important issues. When we convert traditional legal contracts written in natural language into smart contracts written in lines of code, problems will arise. Translation errors will exist in the process of conversion since the law in natural language is ambiguous and imprecise, full of conflicts, and the emergence of new evidence may influence the processing of reasoning. This research project has three purposes: the first aims at the resolution of these problems from logic and technical perspective to develop the accuracy and human-readability of smart contracts, by exploring a more novel and advanced logic-based language to represent legal contracts, and analyzing an extended argumentation framework with rich expressiveness; the second purpose is to investigate various existing technologies like Akoma Ntoso and Legal- RuleML, making the legal knowledge and reasoning machine-readable and be linked with the real world; third, to investigate the implementation of a mature multi-agent system incorporating the software agents with sensing, inferring, learning, decision-making and social abilities that can be fitted onto DLTs

Integrating natural language and formal analysis for legal documents

Although much research has gone into natural language legal document analysis, practical solutions to support legal document drafting and reasoning are still limited in number and functionality. However given the textual basis of law there is much potential for NLP techniques to aid in the context of drafting legal documents, in particular contracts. Furthermore, there is a body of work focusing on the formal semantics of norms and legal notions which has direct applications in analysis of such documents. In this paper we present our attempt to use several off-the-shelf NLP techniques to provide a more intelligent contract editing tool to lawyers. We exploit these techniques to extract information from contract clauses to allow intelligent browsing of the contract. We use this surface analysis to bridge the gap between the English text of a contract to its formal representation, which is then amenable to automated deduction, specifically it allows us to identify conflicts in the contract.peer-reviewe

Smart-Graph: Graphical Representations for Smart Contract on the Ethereum Blockchain

International audienceThe Ethereum blockchain enables executing and recording smart contracts. The smart contracts can facilitate, verify, and implement the negotiation between multiple parties, also guaranteeing transactions without a traditional legal entity. Many tools supporting the smart contracts development in different areas are flourishing because in Ethereum blockchain valuable assets are often involved. Some of the tools help the developer to find security vulnerabilities via static and/or dynamic analysis or to reduce the Gas fees consumption. Despite the plethora of such tools, there is no tool supporting smart contracts evaluation and analysis via a graphical representation for expert developers. The paper embraces this way to facilitate the developers' analysis activity, by proposing a graphical representation model to visualize smart contract source code. The paper makes available a tool via a web interface, which accepts the smart contract address as an input and produces a graphical representation of the smart contract as an output. The graphical representation can help developers to better understand the structure of smart contracts and share it with other developers. Moreover, some metrics, such as the relations among smart contracts, are easier to be understood via "spatial" than "tabular" representation. Indeed, representing smart contracts' metrics via visual representation facilitates the developers, who are used to analyze the source code by directly inspecting it or using other tools that provide the metrics in a table format. Finally, the paper provides detailed data regarding a smart contract to the developers and proposes a graphical representation of the smart contracts without obscuration of details, also highlighting areas of the code that are possibly too big in size and/or too complex via a diagram displaying their connections