Side Contracts

Definition ∞ Side contracts are agreements that exist alongside a primary blockchain transaction or smart contract, specifying additional terms not directly executable on-chain. They can be legal agreements in traditional formats or off-chain digital commitments complementing on-chain actions. Side contracts address aspects like liability or complex payment schedules difficult to automate entirely within a smart contract. They bridge the gap between immutable on-chain logic and flexible real-world legalities.
Context ∞ Side contracts are a relevant consideration for businesses and legal professionals integrating blockchain technology with existing legal frameworks. Discussions often involve the enforceability of these off-chain agreements in conjunction with on-chain operations. The interaction between traditional legal systems and smart contract logic remains a key area of development and legal analysis.