In simple terms a smart contract is a computer protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract. Smart contracts allow the performance of credible transactions without third parties because they are fundamentall underpinned by blockchain technology; which makes them ‘decentralised’. Because they are based on a decentralised system that exists between all permitted parties, there’s no need to pay intermediaries (Middlemen) and it saves you time and conflict.
However, to date, smart contracts are still in their infancy cycle with somewhat unclear anticipation of their widespread applicability in the mainstream world of business. Bevan Brittan law firm have provided a helpful paper to give a concise overview about smart contracts and their potential issues.