Nature of contract

1. Contract is private law generally made by the parties to the contract
2. Parties are autonomous
3. Contract is a law made the parties for themselves
4. Contract has different types
5. Parties to the contract has obligation to perform duty
6. Violator (Guilty Parity) has to compensate the affected person

In a case of Karishma Impex v. National Trading Limited, Nepal Law Journal 2048, Decision no. 4444 p. 691 Supreme Court held that “ the parties to the contract can create mutual obligation by agreeing upon the term and condition as per their need within the boundary of law.