**3. Specific legal issues**

### **3.1 Additional steps and process**

The usual procedure for parties entering a commercial contract is that the parties negotiate the heads of terms on the commercial arrangement of the transaction. They seek legal advice on the risks and any appropriate compromises to close the deal. The lawyers' task is to find out their clients' needs and protect their clients' interests and draft a contract for agreement with the opposing party. The terms and the clauses, which reflect the intention of the parties, should be clear without ambiguity.

Traditionally, the negotiation, instructions to lawyers, and the drafting of a contract are carried out in natural language. The formation and execution of a smart legal contract between parties involves additional steps and processes. Coupled with its self-execution and immutable nature, novel legal issues emerge. This section focuses on certain specific key legal issues that emerge from the use of smart legal contracts as discussed below. Other issues that are in common with digital technologies like data privacy and cyber security are not considered.
