Blockchain smart contracts have emerged as an innovative solution that provides opportunities to automate and secure digital agreements across industries. This review addresses both legal and technical considerations related to blockchain smart contracts, with particular attention paid to their intersection and related challenges and innovations. This paper describes three basic concepts of blockchain-decentralization, immutability, and transparency-on which smart contracts rely. This paper examines the current status of legal codification and enforcement of smart contracts focusing on issues of jurisdictional concerns, compliance, and data protection. Reviewers analyze emerging technologies and legal solutions like; hybrid smart contracts as well as decentralized autonomous organizations (DAOs). Some of the topics for discussion include; Smart legal contracts–such legal contracts that have been developed with the application of artificial intelligence technologies as well as new regulation frameworks that have been designed as a result of such enhancement. This paper presents an evaluation of potential trends affecting smart contracts in the field of blockchain with a focus on interlinking with law and economy. Technologists, legal experts, and policy makers have to apply efforts to succeed in society.