Force Majeure in Smart Contracts: A Mixed-Methods Analysis of Legal Challenges

Abstract

This study delves into the integration of force majeure and exceptional events into smart contracts. As much as smart contracts simplify the process and guarantee efficiency, the rigidity of these contracts inherently cannot handle unexpected eventualities that might be provided for in a traditional contract with a force majeure clause. This paper explores the impacts of such rigidity and uncovers both practical and theoretical implications for the legal and technological frameworks governing smart contracts through a qualitative analysis of interviews with legal experts, including (attorneys, judges, and academics). The findings show that the immutability of smart contracts leads all too often to disputes, financial risks, and a lack of legal clarity in an unexpected event. Rather than advocating full automation of legal judgment, the study proposes a governance-oriented and legally-grounded framework in which predefined contractual clauses, oracle-based event verification, AI, conditional execution logic, and escalation mechanisms enable controlled and proportionate responses to exceptional events while preserving contractual consent and human oversight. These mechanisms are presented as conceptual and illustrative design strategies through which legal effects can be technically implemented (e.g., suspension, adjustment, termination) under clearly predefined conditions. By integrating empirical legal insights with conceptual technical models, such as a systematic taxonomy of exceptional events, a high-level governance-oriented framework and a procedural flowchart regarding regulatory alignment, the paper contributes to inter-disciplinary literature concerning adaptive governance of smart contracts; the analysis serves as an example how legal doctrines can influence automated contracting without undermining interpretative authority, or legal certainty in cross-border and volatile settings.