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Alpine Law Associates is the leading full-service law firm encompassing a wide range of legal practices located in Kathmandu, Nepal. It consists of a team of the country's best lawyers, each with expertise in their respective fields, tailored to meet clients' specific needs.

Office Address

Anamnagar-29, Kathmandu

Phone Number

+977 9841114443

Email Address

info@lawalpine.com

Capacity To Contract Nepal

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Elements of a Valid Contract in Nepal 2026: Civil Code 2074

Elements of a Valid Contract in Nepal 2026: Civil Code 2074

A valid contract in Nepal under the Muluki Civil Code 2074 needs seven elements — offer and acceptance under Section 504, lawful consideration, capacity of parties under Section 506, free consent under Section 505, lawful object, certainty, and possibility of performance. This guide unpacks each element with the governing section, the void / voidable consequence when the element fails, and how Nepali courts evaluate enforceability. Updated April 2026.

  • March 31, 2025
Capacity to Contract in Nepal 2026 — Civil Code 2074

Capacity to Contract in Nepal 2026 — Civil Code 2074

"Capacity to contract in Nepal is governed by Section 506 of the Muluki Civil Code 2074 (National Civil Code 2017) — Part 5 on Contracts. Section 506(1) bars three categories: minors (under 18), persons of unsound mind, and persons disqualified by law (insolvents, persons under court interdiction, certain office-holders barred by special statutes). Minors' contracts are VOID, not voidable, with limited exception under Section 640(1) where the guardian contracts for the minor's benefit. Section 506(3) permits a guardian to contract on behalf of an unsound-mind person for their benefit. The Civil Code 2074 omits 'consideration' as a defined essential, replacing the Contract Act 2056 framework that was repealed."

  • April 02, 2025
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