Ricardian Contract - Definition from the Hotspot Shield Encyclopedia

This is a method of creating a contract of law through the recording of a document.

The contract is readable both in a court of law, and by a software application or computer.

A Ricardian Contract uses terminology and formatting that can be executed in software - The format is machine readable and can easily be extracted and read as a standard prose document if required. A Ricardian Contract effectively adds markup to a legal document to digitalize it for faster resolutions, enhanced transparency and smaller transaction costs.