4 Forming a contract: the elements

Offer — a definite promise on stated terms. Acceptance — unqualified agreement to those terms; a counter-offer rejects the original. Consideration — something of value moving each way. Intention to create legal relations. Capacity — parties able to bind themselves. Lawful object. Certainty of terms. Formalities where statute requires them (writing, registration, stamp). In Nepal these elements are reflected in the Contract Act 2058: an agreement made by competent parties with free consent, lawful object and lawful consideration is a contract, and contracts required by law to be in writing must be in writing.