A contract is an agreement between two or more parties which is enforceable by law, such agreement is the outcome of consensus and meeting of mind of the parties. It has some specific nature which can be mentioned as follows:

  • Civil Nature:

The contract has civil nature because it creates rights and obligation to the parties. It is relating to the property and position. In the case of breach of contract, aggrieved party has right to claim compensation. There is no question of punishment as criminal law.

  • Social and Business Nature:

Contract is relating to social and business sector. It regulates the social behavior like, sale of goods, court marriage and several transactions of business.

  • Autonomous Nature:

Every persons has right to choose his act. Under this freedom of people, they can make contract to do or not to do something according to made contract. So, it possesses an autonomous character.

  • Limited Nature:

Contract is limited upon the parties. The parties have rights to determine terms and conditions only for their extent. They have no right to impose any obligation to the third party. Therefore the contract is limited in nature only to the contracting parties.

1 Bijaya Kumar Basnet vs. Kathmandu Metropolitan

2 Tirtha Kumari vs. Ramashekhar Shrestha (2010, p. 298)

  • Relating to promise and obligation:

Contract emerges from the promise. Promise creates the agreement and legal enforceability of an agreement is recognized as contract. Therefore contract is relating to the promise and obligation.