About this service
A smart contract — an agreement written in code that executes its terms automatically — is not regulated in Georgia by a separate statute: it operates as an electronic contract governed by the norms of the law on electronic commerce. A smart-contract audit is therefore not merely a review of program code: it checks whether the code is consistent with the legal rules governing the conclusion of electronic contracts, the provision of information and the confirmation of orders. This service verifies and documents precisely that two-sided — legal and technical — compliance for project teams and investors.
What a smart contract is legally
The law on electronic commerce defines the basic concepts precisely: an information-society service is a service supplied by electronic means, at a distance; an electronic contract is a contract concluded by electronic means. A smart contract fits this definition completely: it is concluded by electronic means, with the parties not simultaneously present, and its performance occurs in the same environment. The law also recognises the concept of an order — a request submitted by the recipient of services to the provider for the purchase or delivery of goods or services — which applies directly when interacting with a smart-contract interface: a user's action in the interface acquires exactly the qualification of an order.
Conclusion and signature
The law regulates the conclusion of an electronic contract simply: where the electronic contract needs to be confirmed by signature, it is concluded in conformity with Georgian legislation. This yields a concrete consequence: if a transaction requires written form or a signature, the smart contract's architecture must satisfy that requirement through the integration of a lawful electronic signature — otherwise the execution of the code cannot compensate for the deficiency of form. In the audit we check exactly this: which element constitutes the offer, which the acceptance, and how the parties' expression of will is fixed at the technical level.
The information that must be provided before conclusion
The law obliges the service provider, before the conclusion of an electronic contract, to supply the recipient clearly, completely and comprehensibly with information on: all technical stages necessary for concluding the contract; the conditions of storing the contract by electronic means and of its accessibility; the languages available for concluding the contract; and the technical means of identifying and correcting an error permitted before the final placement of the order. The parties may, with a defined exception, agree on a different rule. For smart contracts these requirements translate directly: the user must see through which stages the transaction is concluded, where its terms are stored, and how an error can be corrected before the final confirmation.
Orders — confirmation and error correction
The order rules are one of the central points of a smart-contract audit. Under the law, where the recipient places an order by electronic means, the provider must confirm its receipt immediately, also by electronic means; an order or the confirmation of its receipt is deemed received where it is factually accessible to the recipient party. In addition, the provider must, before the final placement of the order, equip the consumer with the technical means necessary for identifying and correcting an error. In a smart contract this means: before the irrevocable launch of the transaction, the user must have a real opportunity to see and correct an error — and this opportunity must be provided through the interface, which gives the auditor tangible criteria to test.
What our audit checks
The result of the audit is a documented conclusion on three matters. First — the contract's life cycle: how offer and acceptance are fixed, how the terms are stored and how accessible they are to the party. Second — the information requirements: does the consumer understand through which stages the transaction is concluded and in which languages it can be concluded. Third — error management: is the confirmation immediate and accessible, and does the consumer have a technical route of correction before the final confirmation. Each point carries a concrete recommendation — in the code, the interface or the documentation.
How we can help
Our specialists will guide you through preparing or launching a smart contract: we assess the project's legal architecture, compare the code's logic with the rules of electronic contracting, and prepare an audit conclusion that will assist you in communicating with investors, partners and the regulator. Contact us for a concrete plan for auditing your project.
Experience shows that in most smart-contract projects the problem lies not in a technical defect of the code but in the legal foundation: it is unclear who is a party to the contract, which action constitutes the offer and which the acceptance, and what happens when a user makes an error. These questions must be answered and documented before launch — which is precisely what an audit does, while correction is still cheap. A legal defect discovered after launch often costs far more than eliminating it at the planning stage would have cost.
The audit report also serves another function: it becomes the language of communication with third parties — investors, auditors, partners. A document explaining how the contract's architecture satisfies the rules of electronic contracting means that the project's legal side is not a matter of conjecture but a verified fact.