A smart contract is a program stored on a blockchain that executes automatically when its conditions are met. Nobody can change or stop it unless that ability was written into the code.
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Smart contracts hold and move tokens by rules anyone can read. They power stablecoins, DEXs, lending markets, NFTs and DAOs. Ethereum made them popular; Solana, BNB Chain, Avalanche and others run them too.
Code is law cuts both ways: a bug can be exploited and funds drained, often with no way to reverse it. Reputable projects publish audits and run bug bounties, but audits reduce risk rather than remove it.
Not by themselves. They are code; whether an agreement is legally enforceable depends on the law of the country involved.
Only if it was built to be upgradeable. Upgradeable contracts are flexible but add trust in whoever holds the upgrade keys.