The implications of smart contracts in legal agreements are significant as they automate the execution of contracts using blockchain technology. Smart contracts are self-executing agreements where the terms are directly written into code. This minimizes the need for intermediaries like lawyers or notaries, reduces costs, and increases efficiency. Furthermore, they provide an immutable record of transactions, enhancing trust and transparency. However, there are challenges related to legal enforceability and interpretation, as traditional legal frameworks may not fully encompass the nuances of smart contracts.