A Smart Clause® Template is a constituent element of a smart contract. Instead of having to make a full contract executable or 'smart', a user can simply add programmable Smart Clause® Templates to new or existing legal contracts to perform various functionalities.

For example, a 'delivery' Smart Clause® Template and a 'payment' Smart Clause® Template may be added to an existing supply contract template. This easily enables legal contracts to be made programmable and executable.

Smart Clause® Templates respond to data from the outside world (requests) and return responses. They may optionally emit events, such as a payment obligation.

A Smart Clause® Instance is an instance of a Template, where the variables for the template have been set to specific values. A Smart Clause® Instance may be instantiated by either parsing natural language text that conforms to the structure of the template grammar, or may be instantiated from a JSON object that is an instance of the Template Model for the template.