If you wanted to create an organization represented by a DAO in this system, then you would still need to register a legal entity with your government to represent your organization (for tax and regulatory reasons). But that organization could have exactly one bylaw saying, essentially, "this organization shall operate according to the DAO uniquely identified as ABCXYZ123". Then you do all further work in the DAO.

If you wanted to create a contract of some kind, you wouldn't need to do even that. A "contract" in law is fairly general: it's an agreement, entered into voluntarily, between multiple partners for their mutual benefit. It's often done on paper, but not necessarily: they can be created orally, or via email. There's no reason I know of that a DAO couldn't create a contract, as long as you could show to a court that it fits all the normal criteria for a valid contract.

The main complication in all this is that it's unusual and, at least at first, judges wouldn't know how it works and would want proof that it creates a legal contract.