I've been reading on some common use cases how using smart contract get rids of the needs of an intermediaries and how trust issues can be solved having everything decentralized.
But there few things I'm confused. Assuming in the context of house rental payment. Landlord and tenant both enter into a contract and my assumptions are:
Assuming it's a 12 months contract. Tenant would deposit 12 months worth of rental into the contract and the balance gets locked and deducted on a monthly basis. Tenant is not allowed to use the balance.
If the contract ceases, rightfully landlord would destroy the contract and the remaining balance gets returned to the tenant. However, what if the landlord refuses to do so or the landlord has lost the wallet? How would the tenant get back the balance?
If #1 assumption is valid. Wouldn't this discourage the use of smart contracts for rental payment? If I'm the tenant I would have opted for normal bank payment rather than using smart contracts since it locks my money for 12 months.
Please correct me if I'm wrong. Thanks!