Legal Literacy - This article discusses the implementation of Smart contracts in society with the freedom of contract that occurs between the parties.

Contracts have a function to protect the interests of the parties against interests or assets so as to minimize disputes. This condition is also supported by advances in science, telecommunications and information technology and modern modes of transportation that provide freedom of movement for transactions of goods and / or services to cross the borders of a country.

The development of contracts continues to transform from being conventional to digital as economic activity has been electronically based. However, it becomes a legal debate with the existence of electronic-based agreements calledSmart Contractor called a digital-based smart contract.Smart Contractis a further development of the application ofblockchainaftercryptocurrencynamely an agreement or agreement between parties that is able to execute the clauses of the agreement automatically.

In principle, in carrying out an agreement, the parties must implement the principles that apply in the agreement including; the principle of Freedom of Contract (Freedom of Contract); Principle of Consensualism (Concensualism); Principle of Pacta Sunt Servanda; and the Principle of good faith (good faith'). Several principles above aim to provide a balance between the parties who make, implement, until the completion of the agreement so as to be able to predict (predict'), provide (provide) and protect it (protect).