An agreement becomes a contract when it creates a legal relationship enforceable by law. Section 504 describes a contract as an enforceable agreement between two or more persons to do or not do something and states that a binding legal relationship arises once the contract is formed.[1]
A social understanding or informal promise is therefore not automatically an enforceable commercial contract.
Sources
- Nepal Law Commission, **National Civil Code, 2074**, Part 5, including ss. 504–541 and special contract chapters. View source