A smart contract in itself is not a legally binding contract in that lawyers and other entities do not see these digital functions as binding. But by wrapping the smart contract code in well-defined legal text, the industry might accept these new solutions.
By designing a standardized text for legal work, documents could be transacted on a peer-to-peer basis without concern over legal repercussions since the short and sweet text attached to the smart contract could be opened into the full legal document.
Via CoinDesk http://ow.ly/RxTt300e7CQ
