Define contract.

A contract is a legally binding agreement between two or more parties that creates mutual obligations enforceable by law. According to the Contract Act, 2020 (2076), a contract is defined as:

"An agreement enforceable by law is a contract."

Key Elements of a Contract

1. Agreement: Must involve an offer and acceptance.
2. Lawful Object: Purpose must be legal.
3. Consideration: Both parties must exchange something of value.
4. Competent Parties: Parties must be legally capable of entering into a contract.
5. Free Consent: Consent must be given without coercion, fraud, or misrepresentation.

A contract becomes legally binding only when all these elements are present. It establishes rights and duties that courts can enforce if breached.