An Analysis on Major Elements of a Valid Contract Under Muluki Civil Code, 2074

Abstract

A contract is a voluntary arrangement between two or more parties that is enforceable at law. It is a legally-binding agreement that obligates two or more parties to complete certain tasks. It creates rights and obligations to parties of the contract. A Contract is a promise or set of promises made between two or more parties which allow the courts to make a judgement. It is a body of law which is concerned with formation and enforcement of the contract. The formation of a contract generally requires an offer, acceptance, consideration, certainty, capacity, free consent and a mutual assent of two or more persons to be bound. The forms of contract may be in written, oral and by conduct. Every agreement must possess the essential elements for a valid contract. The agreement involves a valid offer by one party and valid acceptance of the offer by the other party than only that agreement became contract. Those agreement which has included an essential elements of a valid contract is legally enforceable. In the Muluki Civil Code, 2074 the offer, acceptance, legal relationship, capacity of parties, free consent, lawful objects, writing and registration, certainty, possibility of performance and not expressly declared void are considered as an elements of a valid contract. In the modern age of legal development, the contract law has importance in every business activities of human society. It is an inevitable subject-matter of business or corporate law. The law of contract is considered as an important part of business law because the act of transaction is performed between two or more parties and relationship between them is governed and regulated by the contract.