Can a Smart Contract Be Considered a Legal Contract?

A smart contract can be a legally binding contract, but it is not automatically one. For a smart contract to be considered a legal contract, it must satisfy the traditional requirements of a contract, such as offer, acceptance, and consideration.

Several jurisdictions have enacted legislation recognizing the legal standing of smart contracts, but their enforceability depends on the specific circumstances and the legal framework of the region. Many smart contracts function more as automated agreements or as components of a larger legal contract rather than standalone legal agreements.