Muluki Civil Code, 2074 (Contracts)
The general law of contract in Nepal since it replaced the Contract Act, 2056: formation, validity, performance, breach, damages and specific performance.
What you are facing
A contract is tested on the day something goes wrong. A supplier misses delivery, a distributor stops paying, a partner walks away with the client list. Whether you recover quickly or spend years in court usually depends on clauses that were negotiated, or ignored, months earlier.
We draft, review and negotiate the agreements that run a business: supply and distribution, services, agency, joint ventures, leases, employment, confidentiality and technology licences. Our litigators read every draft as an opponent would, so remedies, notice periods, governing law and dispute resolution clauses are written to be used, not just signed. Where a commercial disagreement risks being turned into a fraud or cheque complaint, we advise on that exposure as well.
Legal framework
The statutes that govern this area, and what each one means for your matter.
Muluki Civil Procedure Code, 2074
Governs how contractual claims are filed, proved and enforced in court, including the limitation periods within which a claim must be brought.
Arbitration Act, 2055
Gives effect to arbitration clauses, so the dispute resolution clause you agree today decides whether a future dispute goes to court or to a private tribunal.
Electronic Transactions Act, 2063
Recognises electronic records and digital signatures, which matters for agreements concluded by email or online platforms.
Banking Offence and Punishment Act, 2064
Where payment is made by cheque, dishonour can trigger criminal proceedings alongside the civil claim, so payment mechanics deserve as much care as price.
Criminal exposure alongside civil recovery
Our approach, step by step
Understand the deal
We start with the commercial objective, the leverage on each side and the risks you most need covered.
Draft or review
Clear drafting of obligations, payment, warranties, liability caps, termination and dispute resolution, with a plain-language summary of what matters.
Negotiate
We handle redlines and negotiation calls, explaining which points are worth holding and which can be traded.
Manage performance
Notices, variations and records kept properly during the life of the contract, so your position stays strong.
Enforce or exit
When things go wrong, we pursue negotiated settlement, mediation, arbitration or litigation, whichever recovers the most at the least cost.
What is at stake
A weak contract turns a business problem into a legal one. Vague payment terms, missing liability caps or an unworkable dispute clause can mean unrecoverable losses, years of litigation, or a commercial dispute being reframed as a criminal complaint.
Questions clients ask
Is an agreement made over email or WhatsApp binding?
It can be. Nepali law recognises electronic records, and a contract does not always need a single signed document. Proving the exact terms is harder, though, so important deals should be recorded formally.
Should we choose arbitration or the courts?
It depends on the counterparty, the value at stake and where enforcement may be needed. Arbitration offers privacy and a specialist tribunal; courts can be more suitable for straightforward debt recovery. We advise deal by deal.
Can a business dispute become a criminal case?
Yes. Allegations of cheating, breach of trust or cheque dishonour are often filed in commercial disputes to add pressure. Good drafting and early advice reduce that risk considerably.
General legal information for public awareness, not legal advice for your specific situation. Consult an advocate →
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