Are Platform Contracts Legally Binding?

Legal requirements for a valid contract

In most common law and civil law jurisdictions, a contract requires:

1. Offer — a clear proposal of terms
2. Acceptance — unambiguous agreement by both parties
3. Consideration — something of value exchanged
4. Capacity — both parties must be legally capable of contracting
5. Intention to create legal relations — both parties intend to be bound

Platform contracts meet all five:

• The proposal and acceptance are digitally recorded with timestamps
• CBLT escrow constitutes consideration (an obligation of value)
• Users attest capacity at registration
• The contract explicitly states it creates legal obligations

Digital signatures

Platform signatures are cryptographically timestamped. In most jurisdictions, a digital signature on a documented agreement is legally equivalent to a wet signature for commercial contracts, under eIDAS (EU), ESIGN Act (US), and similar legislation.

The dispute resolution clause

Every platform contract includes an arbitration clause. This is a standard commercial practice — arbitration clauses are used in construction contracts, employment contracts, financial agreements, and international trade instruments worldwide.

Under UNCITRAL Model Law on International Commercial Arbitration (adopted in whole or part by 120+ countries), parties to a commercial contract may agree in advance to resolve disputes by arbitration rather than litigation. The resulting award is enforceable in all signatory states to the New York Convention (172 countries).

What jurisdiction applies?

The platform currently operates under Irish law as the default governing law for contracts formed between parties who do not specify otherwise. Parties may specify their preferred governing law in the contract — this is supported in contract templates.

Tax and reporting obligations

Tax timing — the canonical position. CBLT is a deferred, conditional claim, not a cash payment. Minting CBLT and any intermediate transfer of it — including a milestone release — are not tax events: no income is recognised and no VAT applies at that point. Both income recognition and VAT arise once, at the burn event, when CBLT is actually redeemed for a real good, service, or right of use. This is what allows CBLT to function as a Multi-Purpose Voucher under EU Directive 2016/1065 (see What Is CBLT?) — the tax event tracks consumption, not production. This is general information, not tax advice; treatment varies by jurisdiction and circumstances — consult a qualified tax adviser for your specific situation.

The platform provides full exportable transaction records so you can report accurately when a burn event occurs. Users are responsible for reporting under the laws of their own jurisdiction.