Contract creation and enforcement in Nepal are governed by Nepalese contract law. The Contract Act, 2056 (Nepal Sambat) (2000 AD) is the fundamental source of contract law in Nepal. This act establishes the legal framework for parties to enter into legitimate contracts, their rights and obligations, and the remedies available in the event of a breach of contract.

Here are some of the most important characteristics of Nepalese contract law:

1.Contract Formation: A contract is formed when two or more parties make an offer and accept it. The offeree must be informed of the offer, and acceptance must be unconditional and in response to the offer. Furthermore, the agreement must be legal and must not be unlawful or voidable under the law.

2.Consideration: According to Nepalese contract law, every legitimate contract must include an element of consideration. Consideration is the transaction of something of value between the contract's parties. It could be money, commodities, services, or any other benefit that one party provides or promises to provide to the other.

3.Capacity: In order for a contract to be enforceable, both parties must have the legal capacity to enter into one. Individuals who are of sound mind and have reached the age of majority are generally considered to have the ability to contract. Minors and people of unsound mind may not be able to engage into binding contracts.

4.Legality of the Object: The contract's subject matter must be legal. Any contract that involves criminal acts or violates public policy is deemed null and invalid.

5.Written and Oral Contracts: Both written and oral contracts are recognized by Nepalese law. Certain types of contracts, such as those for the sale of immovable property or those that must be registered under the law, may, nonetheless, require written paperwork to be binding.

6.Breach of Contract: A breach of contract occurs when one party fails to perform its responsibilities in accordance with the terms of the contract. The injured party has the right to seek redress for the breach, which may include monetary damages, specific performance, or contract cancellation.

7.Limitation of Actions: A party must file a lawsuit for breach of contract within a certain time frame. These time limits are specified by the Limitation Act, and if a claim is not made within the prescribed period, the right to suit may be lost.

It is crucial to note that this summary merely provides a high-level overview of Nepalese contract law; actual legal rules may be more complicated. If you are involved in any contract-related concerns in Nepal, you should seek the opinion of a knowledgeable legal expert who can provide you with accurate and up-to-date advice based on the individual facts of your case.