A smart contract wouldn't put someone in jail(how often does that directly result from a contract dispute anyway?)...a lawsuit would he how someone resolves the issue if that remedy is available and necessary
Fraud is a criminal offense where you lie or deceive people about things. For example on contracts. Where you can end up in jail. Smart contracts don't fix this.
A contract dispute is where both parties are truthful, but disagree on the resolution of the contract. This is the part smart contracts fix.
And it's how insurance companies deal with these problems today.
