Smart contracts, operating on decentralized and tamper-proof digital infrastructure, have the potential to transform traditional legal agreements by automating and digitizing business logic, but their legal enforceability remains a complex issue. While current legal agreements rely on written documents and physical or electronic signatures, smart contracts use code to automatically execute and settle agreements based on predetermined conditions, reducing the need for manual intervention and trust between parties. The transition to smart contracts involves challenges such as ensuring legal recognition, standardizing contract languages, and managing non-operational clauses that require subjective interpretation. Legal experts suggest that existing laws on electronic contracts could be adapted for smart contracts, but establishing industry standards and litigation procedures is crucial for widespread adoption. As smart contracts evolve, they promise significant efficiencies in conducting business by minimizing counterparty risk and automating contract lifecycles, paving the way for a more trustless and efficient global economy.