What makes a contract legally valid in Nepal?

Contracts & Business Law

Under section 505 of the National Civil Code, an enforceable contract requires consent intended to create a binding obligation, legal capacity of the parties, a definite subject creating an obligation and a lawful obligation.[1]

Core requirements

  • genuine consent;
  • capacity to contract;
  • sufficiently certain subject matter;
  • lawful purpose and obligation;
  • any special formality required by law.

A contract can still be void or voidable if it falls within the invalidity provisions of the Civil Code.

Sources

  1. Nepal Law Commission, **National Civil Code, 2074**, Part 5, including ss. 504–541 and special contract chapters. View source
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