Theoretical frames: barriers and enablers of implementation ^
An illustration of barriers and gatekeepers – the case of the Swedish legal industry ^
Current hindering organizational structures and gatekeeping partners with veto power ^
Only few assert smart contracting as a business opportunity ^
Innovation in contracts and lawyers’ work products remains rare – but is long overdue ^
Overcoming the barriers and convincing gatekeepers to change ^
Where do we go from here? ^
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- 1 Haapio, Plewe & de Rooy 2017, p. 1.
- 2 See, e.g., Weatherley 2005, Haapio 2013(a) and 2013(b), Waller et al. 2016 and 2017, and Passera 2017.
- 3 Surden 2012.
- 4 The idea of smart contracts was introduced by Nick Szabo already in the 1990s (Szabo 1997). It took a while before smart contracts became the hot topic they now are. – For us, as for, e.g., Clack et al. 2016 and Hazard & Haapio 2017, it is important that the smart contract is also a legally enforceable contract, a smart legal contract.
- 5 Hazard & Haapio 2017 and Haapio, Plewe & de Rooy 2017.
- 6 See, e.g., Waller et al. 2016 and 2017, Passera 2017, Haapio/Hagan 2016, and Haapio 2013(a) and 2013(b).
- 7 Kronblad 2017.
- 8 Haapio & Hagan 2016.
- 9 Bernstein 2010, p. 2272 (citations omitted).
- 10 Id., at p. 2291 (citations omitted).
- 11 Christensen 2013.
- 12 Susskind 1990, p. 108–109.
- 13 Susskind 1990, p. 115.
- 14 OECD 2004, p. 21–32.
- 15 Arendt 2008.
- 16 Susskind 1990, p. 115.
- 17 Sandström 2017, p. 54. This report (in Swedish, with a brief English summary) investigates how digitalization affects the legal services industry in Sweden.
- 18 This citation and the ones that follow in this section are translations of Swedish language transcripts from the interviews, on file with the authors. For details of the research, contact Charlotta Kronblad at email@example.com.
- 19 See, e.g., Felsenfeld & Siegel 1981, Kimble 2006 and 2012, Waller et al. 2016 and 2017, Passera 2017, and Haapio 2013(a) and 2013(b), with references.
- 20 Haapio 2013a, p. 70.
- 21 For new contract genres beyond smart contracts, see, e.g., Haapio et al. 2018 and Hazard & Haapio 2017.
- 22 Haapio & Siedel 2013, p. 70, referring to the Scottish & Newcastle legal team’s findings explained in Weatherley 2005, p. 39.
- 23 See, e.g., Waller et al. 2016 and 2017, Passera 2017, and Haapio 2013(a) and 2013(b).
- 24 See, e.g., Adams & Allen 2012. According to Ken Adams’ blog post of January 29, 2013(a), «inertia has rendered most of corporate America either complacent about suboptimal contract templates or incapable of doing anything about them».
- 25 See, e.g., DiMatteo, Siedel & Haapio 2012, p. 61 and Triantis 2013, p. 16: «standard contract terms are often sticky or locked-in practices» and Id, 5: «Departures from standard terms raise the reading costs of contracting partners as well as their suspicions.» See also Adams 2013b: «For lawyers unwilling or unable to overhaul their traditional contract language, the excuse of choice is that traditional language has been ‹tested› – if you meddle with it, you’re exposing yourself to all sorts of risk.» – For path dependence more generally and how history matters in organizations, see, e.g., Schreyögg et al. 2011.
- 26 See, e.g., DiMatteo, Siedel & Haapio 2012, p. 61, and Triantis 2013, p. 5. – See also Gulati & Scott 2012 and Richman 2011, p. 83: «Firms continue to produce contracts with inferior language because they are hard-wired to resist change and fear deviating from familiar texts.»
- 27 For document assembly and computer-based drafting, see, e.g., Adams 2009 and Quinn & Adams 2007. Today anyybody – lawyer or not – can have access to comprehensive commercial «off the shelf» automated forms, templates, clause libraries, and web-based self-service solutions for contract creation. Using a search engine on the Internet for «contract automation» or «automated contract assembly» will bring thousands of results.
- 28 Adams 2009. For «dysfunctional drafting», see Adams 2008 and for «the illusion of quality in contract drafting», Adams & Allen 2012.
- 29 Malhotra 2012.
- 30 For Comic Contracts and smart (parametric) insurance contracts, see Haapio et al. 2018, with references.