What is contract?

1. According to contract Act 2056 section 2(a) “Contract is an agreement made between two or more than two parties do or not to do something that is enforceable by law.”
2. Similarly Indian Contract Act 1872 Section 2 define “Contract is an agreement enforceable by law”

 Many scholars has also tried to define the contract

1. According to Salmond “Contract is an agreement creating and defining obligation between the parties.”
2. According to F Pollock “A contract is a promise or set of promise for the breach of which law provide remedy.”

Similarly Supreme Court of Nepal in a case of Sarki Kami v. Kancho Kami NKP 2048 page 546 define Contract as

“To be a contract there should be agreement between two or more than two parties to do or not to do something and if there is element of offer and acceptance then that could be said as contract.”

Thus the contract is an agreement made between the parties to do or not to do something that should be enforceable by law. Generally from above definition four elements should be there for contract

1. Two or more than two parties
2. An agreement
3. Enforceable by law
4. Condition – to do or not to do something

Set of Promise + some consideration = Agreement                       

Agreement+ Enforceable by law = Contract

E.g. A offered to B that you provide me your laptop I will pay 40000 and if B accepts then there is contract.