Not sure if I understand how this is supposed to work. If I have a eg. rental contract with a witness, either a) the landlord and tenant have legal rights which

Not sure if I understand how this is supposed to work. If I have a eg. rental contract with a witness, either a) the landlord and tenant have legal rights which render the contract largely irrelevant or b) the idea is to not have legal rights anymore, and instead we're paying a trustworthy third party to adjudicate. Either way smart contracts don't seem to be particularly attractive. I'd kind of assumed smart contracts were for things like financial trading where there are somewhat legitimate electronic oracles and parties are assumed to be competent, functional adults with an understanding of the risks. I can't really see it working out in the world of normal people.