Contracts are agreements between legal entities, human and non-human.
"Smart" contracts in it's current form allows for automatic execution between parties, where one or both parties can be another SC. I would put them im the juridical person or non-human camp legally speaking. This property can generate quite an advanced exexutiom through cascadation effect with a lot of deployed SC on the blockchain and is publicly auditable by anyone and will be audited by a lot of people if a huge amount of financial stake is present.
I personally see an immense upside in this approach rather then current contract law in TradFi, based solely on promises and insurance to customer front.
IMO one such deployed contract does indeed not make it smart but an inter-connected network of them can generate systems that can be indeed called smart.
