Define the term 'Contract law'.

Contract law refers to a branch of civil law that governs the formation, interpretation, and enforcement of agreements between two or more parties. It establishes legally binding obligations that courts can enforce if one party fails to fulfill their part of the bargain. Under contract law, an agreement must include an offer, acceptance, consideration (something of value exchanged), and an intention to create legal relations to be valid. The law ensures fairness, clarity, and accountability in business and personal transactions, providing remedies such as damages or specific performance for breaches.

In Nepal, contract law is primarily governed by the Contract Act, 2064 (2007) and common law principles. It applies to all legally binding agreements, including business contracts, employment agreements, and consumer transactions.