Yes, a contract can generally be made orally in Nepal. Section 505 of the National Civil Code recognizes contracts made in writing, orally or through the conduct of the parties. However, if another law requires a particular type of transaction to follow a specific form, registration or other formality, the contract is not enforceable until that requirement is satisfied.[1]
What makes an oral agreement enforceable?
The same basic requirements that apply to other contracts still matter: genuine consent, legal capacity, a sufficiently definite subject matter and a lawful obligation.
Practical difficulty
The main problem with an oral agreement is usually proof. If the parties later disagree about price, scope, deadlines or promises, documents such as invoices, messages, emails, payment records and conduct can become important evidence.
Sources
- Nepal Law Commission, **National Civil Code, 2074**, Part 5, including ss. 504–541 and special contract chapters. View source