chhatramani/nepal_legal_acts_corpus_english huggingface dataset:
Muluki Civil Code, 2017

456. Tenant may pre-empt: If there is no right-holder whose property is adjacent or contiguous under section 455, or if there is but he/she does not pre-empt, and if there is a tenant on such property under law, such tenant may pre-empt such property. 457. Pre-emption of sold house: (1) In a situation where different parts of a single house have different owners, if the owner of any part of such house sells his/her part to someone, the owner of another part who wishes to pre-empt such part may pre-empt the house by paying to the buyer the amount paid by the buyer and the fee paid at the time of registering the deed.

(2) When pre-empting under sub-section (1), the following persons shall have priority as follows: -

(a) If the owner of another part is a right-holder, such right-holder; and if there is more than one right-holder, the nearest right-holder,

(b) If the owner of another part is a person other than a right-holder, the owner of the part that is adjacent or contiguous or attached to such part. 458. Pre-emption of house given as donation or bequest: (1) as amended by the Act Amending Some Nepal Acts Relating to the Civil Code, 2075.
Muluki Civil Code, 2017

458. Pre-emption of house given as donation or bequest: (1) as amended by the Act Amending Some Nepal Acts Relating to the Civil Code, 2075. Notwithstanding anything contained in sections 455, 456 or 457, if any person, by relinquishing his/her right for any reason, gives half or any part of a single house, or the land covered by such house, or the appurtenant land, as a donation or bequest, and if the person receiving such donation or bequest transfers the right over such house or land to another person for any reason, the person who made such donation or bequest, or his/her right-holder residing in the same place, if he/she wishes to pre-empt such right, may pre-empt such house or any part thereof or the land covered by such house or appurtenant land.

(2) Notwithstanding anything contained in sub-section (1), if any person receives half or any part of a single house, or the land covered by such house, or the appurtenant land, as a donation or bequest from any person, and if the person from whom he/she received the donation or bequest subsequently gives the remaining part of such house or land as a donation or bequest to another person, the person who first received the donation or bequest, or his/her right-holder, shall be entitled to pre-empt such remaining right.

(3) When pre-empting under sub-section (1) or (2), if the value is mentioned in the donation or bequest deed, an amount equal to such value; if the value is not mentioned, an amount equal to the prevailing market value; and the fee incurred at the time of registering the deed, shall be paid to the creditor.

(4) If there is more than one right-holder who wishes to pre-empt under sub-section (1) or (2), the nearest right-holder; and if there is more than one nearest right-holder, the right-holder who suffers the most loss shall be entitled to pre-empt. 459. No right of pre-emption: Notwithstanding anything contained in sections as amended by the Act Amending Some Nepal Acts Relating to the Civil Code, 2075. 457 and 458, a house or part of a house built under provisions relating to joint housing shall not be subject to pre-emption. 460.
Muluki Civil Code, 2017

459. No right of pre-emption: Notwithstanding anything contained in sections as amended by the Act Amending Some Nepal Acts Relating to the Civil Code, 2075. 457 and 458, a house or part of a house built under provisions relating to joint housing shall not be subject to pre-emption. 460. Procedure for pre-emption: (1) A person wishing to pre-empt any immovable property under this Chapter shall deposit as security the value mentioned in the deed registered at the time of transfer of such property, or if the value is not mentioned, an amount equal to the prevailing market value, and the fee incurred at the time of registering the deed, and file a complaint with the office that registered such deed.

(2) Upon receiving a complaint under sub-section (1), the office that registered the deed shall keep the complainant on a date and issue a summons to the person who is to give pre-emption to appear before such office within seven days, excluding the time allowed for travel.

(3) If the person who is to give pre-emption appears within the period under sub-section (2) and agrees to give pre-emption, the office that registered the deed shall pay the amount deposited as security under sub-section (1) to him/her and effect the pre-emption.

(4) Even if the person who is to give pre-emption appears within the period under sub-section (2) and does not agree to give pre-emption, if it appears from the complaint received, the registered deed, and the records of the office that pre-emption should be given, the office that registered the deed shall decide to give pre-emption;

(2) In a transaction conducted under subsection (1), the person receiving the money or goods must return such money or goods to the person giving them. Explanation: For the purpose of this Chapter, “money” shall be deemed to also include the value of goods. 475. Deemed to have taken a loan: If a person has an obligation to give any money or goods to another in any manner, such person shall be deemed to have taken a loan, and such person, subject to the provisions of this Chapter, must return such money or goods to the concerned person. 476. Transactions not to be conducted without a deed: No person shall conduct a transaction without a deed in accordance with law. Explanation: For the purpose of this Chapter, “deed” shall be deemed to include documents such as cheques, bills, vouchers, receipts, and acquittances that certify any transaction or dealing. 477.
Muluki Civil Code, 2017

Transactions not to be conducted without a deed: No person shall conduct a transaction without a deed in accordance with law. Explanation: For the purpose of this Chapter, “deed” shall be deemed to include documents such as cheques, bills, vouchers, receipts, and acquittances that certify any transaction or dealing. 477. Matters to be specified in a deed: While conducting a transaction, the following matters must be specified according to the nature of the transaction: -

(a) The name, surname, age, address, and the names of the father, mother, grandfather, and grandmother of the persons conducting the transaction,

Provided that a married person must also mention the name of the husband or wife.

(b) The reason for conducting the transaction,

(c) The quantum of the transaction,

(d) The value of any goods that are the subject of the transaction,

(e) If any goods have been given or taken as a loan, borrowing, or in any other manner on the condition of return after a specified time, such particulars,

(f) If any goods have been bartered, such particulars,

(g) The date for repayment of the transacted amount,

(h) If interest is to be charged or paid at the time of the transaction, the rate of interest,

(i) (j) That if the transacted amount is not repaid within the stipulated time, or if other conditions as per the deed are not fulfilled, the creditor may recover the amount due under the transaction from the debtor's property,

(ñ) The place where the deed was executed,

Added by the Act to Amend Certain Nepal Acts relating to the Civil Code, 2080.(j1) The name, surname, and address of at least one witness each for the creditor and the debtor at the time of preparing the deed,

(t) The date on which the deed was executed,

(th) Any other necessary matters to be specified according to the nature of the transaction. 478.
Muluki Civil Code, 2017

478. Creditor may charge interest from the debtor: (1) In case a deed relating to a transaction exists and the matter of charging or paying interest is mentioned in the deed, the creditor may charge interest from the debtor as per the deed.

(2) The amount of interest the creditor may charge from the debtor under subsection (1) shall not exceed ten percent per annum of the principal amount.

(3) In case a deed exists under subsection (1) and the rate of interest is not specified in the deed but only the matter of charging or paying interest is mentioned, the creditor may charge interest from the debtor at the rate of ten percent per annum of the principal amount.

(4) In case a deed exists under subsection (1) and the deed mentions taking profit without mentioning interest, and if the quantum of such profit is not evident from the deed, the creditor may charge it from the debtor in the same manner as interest. 479. Creditor not to charge interest from the debtor: If the matter of charging or paying interest is not mentioned in the deed at the time of the transaction, the creditor shall not be entitled to charge interest from the debtor. 480. No compound interest: (1) The creditor shall not be entitled to charge compound interest from the debtor.

(2) If any creditor has charged compound interest from the debtor contrary to subsection (1), it shall be deducted from the principal, and if the principal has already been paid, such interest must be returned. 481. Interest not to exceed the principal: Notwithstanding anything else written elsewhere in this Chapter, the creditor shall not be entitled to charge interest from the debtor exceeding the principal amount. 482.
Muluki Civil Code, 2017

481. Interest not to exceed the principal: Notwithstanding anything else written elsewhere in this Chapter, the creditor shall not be entitled to charge interest from the debtor exceeding the principal amount. 482. Procedure to be followed when paying or receiving principal and interest: The following procedure must be followed when paying or receiving principal and interest: -

(a) If the debtor pays the entire amount of principal and interest to the creditor, the creditor must tear up the deed of the transaction held with him or specify on any part or reverse of such deed the particulars of the amount collected, affix his signature or seal, and return the deed to the debtor.

(b) If at the time of paying the principal and interest amount under clause (a) the said deed is not found, the creditor must give a receipt to the debtor stating the same particulars, indicating that such amount has been received on this date.

(c) When paying a part of the principal or some interest, the creditor must specify on the reverse of the deed what amount was received on what date, get the debtor’s signature or seal affixed, and if the deed is not immediately found or is not at hand, give a separate receipt to the debtor for the amount received accordingly. 483. Entitlement to interest up to the date of payment: Notwithstanding anything else written elsewhere in this Chapter, if a lawsuit has been filed within the period under Section 484, and the court renders a decree entitling the creditor to interest as well, the creditor shall also be entitled to interest from the debtor up to the date of payment as per the decree. 484. Validity period of a private deed: (1) The validity period of a deed executed privately under this Chapter shall be a maximum of ten years.

(2) Notwithstanding anything written in subsection (1), if within the period of ten years the debtor pays the creditor some amount out of the principal or interest, or if the validity period of the deed is extended for the payment of principal and interest, a further period of ten years shall be added from the date of such payment of principal or interest or extension of the period. 485. Transactions with an incompetent or semi-competent person not recognized: A transaction conducted by any person with an incompetent or semi-competent person shall not have legal recognition. 486.
Muluki Civil Code, 2017

485. Transactions with an incompetent or semi-competent person not recognized: A transaction conducted by any person with an incompetent or semi-competent person shall not have legal recognition. 486. Recovery of amount not permissible from joint family property: (1) If any person has conducted a transaction with another person, and the deed of such transaction does not bear the signature or seal of the head of the household, the creditor shall not be entitled to recover his amount from such joint family property until the debtor acquires a share in it.

(2) Notwithstanding anything written in subsection (1), if the person acting as the head of the household pays such amount, the creditor may accept it.

(3) If a situation under subsection (1) arises and a person is unable to recover the amount from the debtor, the creditor must file a lawsuit against the debtor within ten years to preserve his right.

(4) If a right has been established against the debtor under subsection (3), after the debtor acquires a share in the joint family property, the creditor may recover his amount from him in accordance with law.

(5) For the purpose of recovering the amount under subsection (4), the limitation period for filing a lawsuit shall commence from the date on which the debtor's share vests. 487. Movable property not to be bartered without consent: (1) A major member of a joint family shall not barter any property of the joint family without the consent of the head of the household. Provided that it shall not be necessary to obtain the consent of the person acting as the head of the household to barter one's own private property.

(2) If any person barters property contrary to subsection (1), such barter shall not be valid if the person acting as the head of the household does not consent.

(3) If property is bartered contrary to subsection (1), and the consent of the person acting as the head of the household is not obtained, the property may be reclaimed within thirty-five days. 488. Recovery of amount if transaction is proven: Even if a person has not executed a deed following the procedure under this Chapter, if a transaction with a person appears to be established from any deed, banking transaction, bill of exchange, cheque, voucher, or from the entries in account books, the court may order the recovery of such amount from the debtor in favor of the plaintiff based on such deed, banking transaction, bill of exchange, cheque, voucher, or accounts.
Muluki Civil Code, 2017

Added by the Act to Amend Certain Nepal Acts relating to the Civil Code, 2080.Provided that if a transaction exceeding one hundred thousand rupees was conducted privately in cash, such amount shall not be recovered. 489. Action in case of loss of a private deed or occurrence of force majeure: (1) If a private deed is lost or destroyed due to force majeure, the creditor must file an application to the concerned local level within fifteen days from the date of loss or the occurrence of force majeure, stating the same particulars.

(2) Upon receipt of an application under subsection (1), the concerned local level must record its particulars, prepare a voucher, affix the office seal, and provide such voucher to the applicant.

(3) Upon receipt of any application under subsection (1), the local level shall, within seven days, summon the person who executed the deed if he is alive, and if not, his nearest heir, and if such person consents, cause a new deed to be prepared like the original, certify such deed, and provide it to the applicant.

(4) If the person who executed the deed under subsection (3) does not agree to execute another deed stating that the deed was lost or destroyed due to force majeure, the creditor must, within thirty-five days after the expiry of such period, file a lawsuit providing proof of the loss or destruction due to force majeure to establish his right. 490. Goods subject to a transaction to be returned if defective: (1) Except where otherwise provided in the deed, if any goods for which a price has been paid in a transaction are not as described in the deed or are defective in any manner such that the person cannot use them, notice of such fact must be given to the person giving the goods within thirty-five days from the date of transaction.

(2) Upon receipt of such notice under subsection (1) from the person receiving the goods, and if his claim appears reasonable, if the giver has other goods of the same kind, he must exchange such goods, and if not, he must take back his goods and cancel (nullify) the deed relating to such transaction.

(3) If the giver under subsection (2) fails to exchange such goods or does not take back his goods, the receiver may file a lawsuit to recover an amount equal to the value of such goods and reasonable compensation for the loss or damage suffered from the concerned person, or to have such transaction declared void. 491.
Muluki Civil Code, 2017

491. Goods to be returned in the same state: (1) If any person takes goods owned or possessed by another person for any specific purpose, whether with or without paying rent, or as a loan or borrowing under any condition, after the completion of such purpose, he must return to the owner or possessor goods of the same type, quantity, and quality as he received.

(2) If the goods taken under subsection (1) are lost, destroyed, broken, damaged, or otherwise harmed, except if otherwise provided in the deed, the person taking the goods must arrange for other goods of the same kind and return them to the owner or possessor, and if such goods are not available, must pay the owner or possessor an amount equal to the prevailing market price of such goods.

(3) Regarding the return of goods, payment of rent for such goods, or payment of an amount under subsection (1) or (2), except if otherwise provided in the deed, such goods or rent must be paid to the owner or possessor within fifteen days of the completion of the purpose for which the goods were taken.

(4) If the person taking the goods does not return the goods or pay the amount to the owner or possessor within the period under subsection (3), the person suffering loss thereby may recover the amount for such goods and also reasonable compensation for the loss suffered by him. 492. Limitation period: (1) No limitation period shall apply for filing a lawsuit concerning a transaction made to usurp, misappropriate, cause loss, or damage the property of an incompetent or semi-competent person, or for charging compound interest, or for charging more than ten percent interest.

(2) Except as stated in subsection (1), a person suffering loss from any action or proceeding conducted under this Chapter may file a lawsuit within the following periods from the date of such action or proceeding: -

(a) According to the specific limitation period prescribed for filing a lawsuit in this Chapter,

(b) In a case where a period is specified in a deed, within one year from the date of expiry of such period, and in the absence of a deed or other circumstances, within one year from the date on which the cause of action arose. Part-5

Provisions relating to Contracts and Other Obligations

Chapter-1

General Provisions relating to Obligations

493. Creation of obligation: (1) An obligation shall be created if a person fails to do or does an act for which there is a legal compulsion to do or not to do.

(2) The obligation created under subsection (1) shall be determined and established in accordance with this Chapter. 494.
Muluki Civil Code, 2017

Creation of obligation: (1) An obligation shall be created if a person fails to do or does an act for which there is a legal compulsion to do or not to do.

(2) The obligation created under subsection (1) shall be determined and established in accordance with this Chapter. 494. Circumstances creating an obligation: (1) The obligation under Section 493 shall be created and established as follows: -

(a) By law,

(b) By contract,

(c) By implied or quasi-contract,

(d) By unjust enrichment,

(e) By a unilateral undertaking by any person to accept an obligation,

(f) By an act considered a tort under law,

(g) By an act considered a quasi-tort under law.

(2) The obligation under subsection (1): -

(a) Under clause (a), shall be established pursuant to this Code or other law.

(b) Under clause (b), shall be established according to the contract concluded between the parties.

(c) Under clause (c), shall be established according to the implied or quasi-contract defined under Chapter 15 of this Part.

(d) Under clause (d), shall be established according to unjust enrichment defined under Chapter 16 of this Part.

(e) Under clause (e), shall be determined according to the provision that an obligation is created by law from a unilateral undertaking of any person.

(f) Under clause (f), shall be established from a tort defined under Chapter 17 of this Part.

(g) Under clause (g), shall be established from a defective product or any other act considered a quasi-tort under law defined under Chapter 18 of this Part. 495. Obligation must be performed: (1) The obligation regarding any matter must be performed by the person for whom the obligation is established or created, or by the person who has undertaken the obligation.

(2) If before the obligation under subsection (1) is performed, such person dies or becomes of unsound mind, the heir receiving his property, or his guardian or representative, or if there is a contract of guarantee, the guarantor, must perform such obligation. 496. Obligation must be performed within the stipulated time: (1) If a specific period is fixed for the performance of any obligation, the concerned person must perform such obligation within that period.

(2) If a specific day or time is fixed for the performance of any obligation, the concerned person must perform such obligation on that day or at that time.
Muluki Civil Code, 2017

Provided that where provision is made for performance of the obligation within a specific day or time, the obligation may also be performed before such day or time.

(3) If no period, day, or time for performance of an obligation is determined under subsection (1) or (2), the obligation must be performed within a reasonable period determined based on the nature of the obligation.

(4) If the obligation is not performed under subsection (1), (2), or (3), the person required to perform the obligation shall be deemed to have failed or been unable to perform the obligation. 497. Each person must perform the obligation: (1) If more than one person has undertaken an obligation or if such an obligation is created in respect of them, unless otherwise provided in the contract, each person must perform such obligation equally.

(2) If a person has to perform an obligation towards more than one person, unless otherwise provided in the contract, he must perform the obligation equally towards each person. 498. Obligation may be divisible: (1) In a situation where an obligation is to be performed towards more than one person or by more than one person, if the obligation towards such persons or to be performed by such persons is divisible or severable by its nature, such obligation may be divided, and each person must perform the obligation accordingly.

(2) In the situation under subsection (1), each person or all persons may demand performance of the obligation from each person or all persons who are to perform it. 499. Obligation must be performed in good faith: An obligation created under Section 494 must be performed in good faith by the person required to perform such obligation. 500. Compensation must be borne if obligation is not performed: (1) If any loss or damage is caused to another person due to the failure of the person required to perform an obligation to perform it, or due to delay in performing it, such person must bear compensation for the actual loss or damage caused.

(2) If the person required to perform an obligation fails to perform it through fraud, or if loss or damage is caused in any manner due to willful act or negligence, such person must bear compensation for the loss or damage so caused. 501. Obligation contrary to law not to be performed: Notwithstanding anything else written elsewhere in this Chapter, if the performance of any obligation is contrary to law, public order, or public morality, such obligation shall not be required to be performed. 502.
Muluki Civil Code, 2017

501. Obligation contrary to law not to be performed: Notwithstanding anything else written elsewhere in this Chapter, if the performance of any obligation is contrary to law, public order, or public morality, such obligation shall not be required to be performed. 502. Impossible obligation not to be performed: (1) Notwithstanding anything else written elsewhere in this Chapter, if at the time of creation of the obligation, an obligation of an impossible nature that cannot be performed is created, such obligation shall not be required to be performed.

(2) If an obligation was possible to perform at the time of its creation but later becomes impossible to perform, the consequences of such obligation shall be determined in accordance with law.

(3) Notwithstanding anything written in subsection (1) or (2), if a part of an obligation can be performed and the remaining part cannot be performed, the obligation must be performed to the extent possible. 503. Limitation period: A person suffering loss from any action or proceeding conducted under this Chapter may file a lawsuit within two years from the date on which the cause of action arose. Chapter-2

Provisions on the Conclusion of Contracts

504. Contract deemed concluded: (1) If an agreement enforceable by law is made between two or more persons to do or abstain from doing any act, it shall be deemed to be a contract.

(2) For the purpose of subsection (1), when a person makes a proposal to another person to enter into a contract, and the person so proposed gives acceptance, the contract shall be deemed concluded.

(3) After the contract is concluded, a binding legal relationship shall be established between the parties to the contract. Explanation: For the purpose of this Chapter, -

(1) “Proposal” shall be deemed to mean a proposal presented by one person to another with the intention of obtaining acceptance to do or abstain from doing any act.

(2) “Acceptance” shall be deemed to mean the consent given by the proposed person in the same sense regarding the matters proposed by the proposer in the sense in which they were proposed. 505.
Muluki Civil Code, 2017

505. Contracts enforceable by law: (1) A contract concluded fulfilling the following conditions shall be deemed a contract enforceable by law: -

(a) The consent of the person making the contract expressed to bind himself,

(b) The competence or capacity of the person making the contract to contract,

(c) A definite subject matter creating an obligation,

(d) A lawful obligation.

(2) A contract may be made in writing, orally, or by the conduct of the persons making the contract.

(3) Notwithstanding anything written in subsection (2), if a provision requires that a contract be made only by complying with a specific procedure or formality, such contract shall not be enforceable until such procedure or formality is completed. 506. Persons competent to contract: (1) Any person other than the following persons shall be competent to contract: -

(a) Minors,

(b) Persons of unsound mind. Explanation:

(1) A person who is generally of unsound mind but occasionally of sound mind may contract when he is of sound mind.

(2) A person who is generally of sound mind but occasionally of unsound mind shall not contract when he is of unsound mind.

(2) Notwithstanding anything written in subsection (1), a person deemed incompetent by law to enter into a particular contract shall not be deemed competent to enter into such contract.

(3) When a contract must be made on behalf of an incompetent or semi-competent person, his guardian or representative may make the contract.

(4) When a contract must be made on behalf of a legal person, it must be made by the operator or operators authorized to manage and operate such person, by their decision, or by a person authorized by them.

(5) Notwithstanding anything written elsewhere in this Section, if a person deemed incompetent to contract under this Chapter regarding a particular matter is otherwise permitted by law to contract regarding such matter, such person shall be deemed competent to contract regarding that matter. 507. Autonomy of parties: Subject to this Code, the parties to a contract shall be autonomous to choose the form or subject matter of the contract, to determine the terms of the contract and the nature of remedies for breach of contract, and to specify the means of resolving disputes under the contract. 508.
Muluki Civil Code, 2017

508. Completion of proposal and acceptance: (1) After the proposed person becomes aware of the sending of the proposal, the act of sending the proposal shall be deemed completed.

(2) If the proposer receives the acceptance sent by the proposed person to the proposer indicating his acceptance of the proposal, in respect of the proposer, and if the proposer becomes aware that the proposed person has given acceptance to the proposal, in respect of the proposed person, the act of giving acceptance shall be deemed completed.

(3) Even if acceptance has not been expressly given to the proposal, if the proposed person, by his conduct, complies with any condition mentioned in the proposal, accepts any benefit or service mentioned in the proposal, or otherwise indicates acceptance, acceptance to the proposal shall also be deemed given.

(4) If the proposer makes a proposal stating that the proposal will be deemed accepted if notice of rejection is not sent within a specified time, and until such time, no notice of acceptance is sent by the proposed person, such proposal shall not be deemed accepted. 509. Revocability of proposal or acceptance: (1) The proposer may revoke his proposal by notice. Provided that if the proposer has already received notice of acceptance given by the proposed person before receiving the notice of revocation, such proposal shall not be revoked.

(2) The proposed person may revoke his acceptance sent by notice. Provided that if the proposer has already received the notice of acceptance before receiving the notice of revocation of acceptance, the acceptance shall not be revoked.

(3) A person who has sent a notice of rejection of the proposal may again send a notice of acceptance of the proposal. Provided that if among such notices of rejection or acceptance, the notice of rejection arrives first, the contract shall not be deemed concluded, and if the notice of acceptance arrives first, the contract shall be deemed concluded.

(4) If after sending the proposal, a notice under subsection (1) is sent, after sending the acceptance, a notice under subsection (2) is sent, or after rejecting the proposal, a notice under subsection (3) is sent, and if such notices are received by the concerned person at the same time, the contract shall not be deemed concluded.

(5) If the proposed person sends an acceptance with conditions or by modifying something in the proposal sent by the proposer, the proposed person shall be deemed to have made a counter-proposal. 510.
Muluki Civil Code, 2017

510. Deemed revocation of proposal: A proposal shall be deemed revoked in any of the following circumstances: -

(a) If the proposer made the proposal on the condition of receiving notice of acceptance by a specified time, and the proposer does not receive notice of acceptance from the proposed person by such time,

(b) If the time for sending notice of acceptance under clause (a) is not specified, and the proposed person does not give notice of acceptance to the proposer within a reasonable time,

(c) If the proposer dies or becomes of unsound mind after making the proposal but before receiving acceptance,

(d) If the proposal is revoked under Section 509,

(e) If the proposer dies or becomes of unsound mind even after acceptance is given by the proposed person but before the proposer receives the acceptance,

(f) If the proposed person sends a counter-proposal under subsection (5) of Section 509,

(g) If the proposer made the proposal requiring the performance of any act or condition before acceptance, and the proposed person accepts without performing such act or condition. 511. Contract pursuant to a proposal made to the public: (1) If a person publicly advertises and makes a public proposal that he will pay a certain remuneration to anyone who performs any work mentioned in such advertisement, the person publishing such advertisement must pay the remuneration mentioned in the advertisement to the person performing the work according to such advertisement. Provided that if the work mentioned in the advertisement was done without knowledge of such advertisement, such person shall not be entitled to the remuneration.

(2) If the work mentioned in the proposal under subsection (1) is done Deleted by the Act to Amend Certain Nepal Acts relating to the Civil Code, 2075. by more than one person, only the person who has done such work first shall be entitled to the remuneration.
Muluki Civil Code, 2017

Provided that if two or more persons do the work mentioned in the proposal at the same time, each of those doing the work shall be entitled to share the remuneration equally, and if the remuneration is not divisible, the proceeds from its sale must be distributed equally to such persons.

(3) If a specific time period is fixed for the work to be done under the advertisement published under subsection (1), the proposal under the advertisement shall be deemed revoked immediately upon the expiry of such time.

(4) A proposal made under subsection (1) may be revoked through the same medium by which it was published.

(5) Notwithstanding anything written in subsection (4), if any person has already completed the work according to the advertisement under subsection (1) before the notice of revocation is published, the remuneration mentioned in the advertisement must be paid. Provided that the person doing the work according to the advertisement must have notified the advertiser of the completion of the work as soon as possible.

(6) If any person has notified the advertiser that he has started the work according to the advertisement under subsection (1) and has commenced the work, such person performing the work shall be paid reasonable remuneration for the work done until the advertisement is revoked. 512. Place of contract: (1) The place where the proposer sent the proposal for the purpose of receiving acceptance shall be deemed the place of contract.

(2) In the absence of specification under subsection (1), the place where the proposer received the acceptance shall be deemed the place of contract.

(3) Notwithstanding anything written in subsections (1) and (2), if the parties have specified the place of contract in the contract, that place shall be deemed the place of contract. 513.
Muluki Civil Code, 2017

513. Contingent contract: (1) If a contract is made to do or not to do something upon the occurrence of a future event, no obligation shall be created under such contract until such event occurs.

(2) If a contract is made that a contract shall be deemed to be concluded if a person does a specific act in the future, no obligation shall be created under such contract if such person does or does something that makes it impossible for him to do such act.

(3) If a contract is made to do or not to do something upon the non-occurrence of an uncertain future event, the obligation under such contract shall be created only after such event becomes impossible to occur.

(4) If a contract is made to do or not to do something upon the occurrence of an event within a specified time in the future, such contract shall be deemed void after such specified time or after such event becomes impossible to occur after the expiry of the specified time.

(5) If a contract is made to do or not to do something upon the non-occurrence of an event within a specified time in the future, the obligation under such contract shall be created if such event does not occur within such time or if it becomes certain that such event will not occur within such time. 514. General provisions of contract to apply: The provisions of this Chapter and Chapters 3, 4, and 5 of this Part shall generally apply to other contracts concluded under this Code or law. 515. Interpretation of a contract: (1) A contract shall be interpreted according to the common intention of its parties.

(2) If the intention under subsection (1) cannot be established, the contract shall be interpreted according to the meaning a person of ordinary understanding, in the position of a party, would give in normal circumstances.

(3) If a statement or conduct of one party to a contract is known or can be deemed known to the other party, the contract shall be interpreted according to the intention of such party.

(4) The terminology and expressions used in a contract shall be interpreted based on the contract as a whole or the context in which such terminology and expressions appear.

(5) The terminology used in a contract shall be interpreted in a manner that gives effect to all the terminology used therein, without rendering any terminology ineffective to the exclusion of others. 516. Limitation period: A person suffering loss from any action or proceeding conducted under this Chapter may file a lawsuit within two years from the date on which the cause of action arose.
Muluki Civil Code, 2017

516. Limitation period: A person suffering loss from any action or proceeding conducted under this Chapter may file a lawsuit within two years from the date on which the cause of action arose. Chapter-3

Validity of Contracts

517. Void contracts: (1) A contract that is not recognized by law shall be deemed a void contract.

(2) The following contracts shall be void: -

(a) A contract that restrains a person from engaging in a profession, trade, or business not prohibited by law,

Provided that a contract shall not be deemed to restrain a person from a profession, trade, or business in the following circumstances: -

(1) a contract made between a buyer of goodwill and the seller of a trade or business, that the seller shall not carry on a similar trade or business within the period and place specified in the contract.

(2) A contract between partners that, while the partnership lasts, a partner shall not carry on the same or any other profession, trade, or business with competitors other than the profession, trade, or business of the partnership firm.

(3) A contract between partners that, after leaving the partnership, a partner shall not carry on the profession, trade, or business of the partnership firm for a specified reasonable period or in a specified place.

(4) A contract between a person and another person, firm, company, or entity, that while serving or for a specified period after retirement from the service of such person, firm, company, or entity, such person shall not accept service with any other person, firm, company, or entity competing with such person, firm, company, or entity.

(b) A contract that restrains a person from marrying any person other than a marriage prohibited by law,

(c) A contract that restrains a person from availing a facility being availed by the public,

(d) A contract that restrains a person from enforcing a legal right obtained by him through any court,

(e) A contract that is against the law or relating to a matter prohibited by prevailing law,

(f) A contract made for an immoral purpose or against public order or interest,

(g) A contract where the subject matter of the contract is not clearly certain or known to the contracting parties, making it impossible to perform,

(h) A contract that is impossible to perform at the time it is made, or a fictitious contract,

(i) A contract that is vague, incapable of being given a reasonable meaning,

(j) A contract made by a person incompetent to contract,

(k) A contract with an unlawful purpose,

(l) A contract made by mistake of both parties at the time of contracting regarding an essential fact of the contract.

(3) A void contract shall be invalid from the beginning and shall not create any legal consequences, rights, or obligations of the parties.

(4) Even if a part of a contract is void, the remaining part shall be enforceable by law.
Muluki Civil Code, 2017

518. Voidable contracts: (1) A contract that can be declared void by a court at the instance of a party to the contract shall be deemed a voidable contract.

(2) A contract made as follows may be avoided by the person suffering loss from such contract through a court: -

(a) A contract made by coercion,

Explanation: If any person, with the intention of causing another person to make a contract against his will, keeps or threatens to keep his property in custody, or threatens to cause harm to his body, life, or reputation, or does or threatens to do any other unlawful act, it shall be deemed coercion.

(b) A contract made by undue influence,

Explanation:

(1) Influence exerted over a person who is under one's influence and can be made to act according to one's will, with the intention of taking any unfair advantage for one's own interest or benefit, shall be deemed undue influence.

(2) Without prejudice to the generality of clause (1), the following persons shall be deemed persons under one's influence and can be made to act according to one's will: -

(a) A person under one's guardianship, representation, or charge,

(b) A person who, due to old age, illness, or physical or mental infirmity, is temporarily or permanently incapable of considering his own interest,

(c) A person over whom one can exert economic or positional pressure.

(c) A contract made by fraud,

Explanation: If a party to a contract or his representative, with the intention of deceiving the other party or his representative, makes a false statement knowing it to be false, or does any act likely to induce belief in a false statement, or knowingly conceals a fact while aware of it, or does any other act that constitutes fraud under law, it shall be deemed fraud.

(d) A contract induced by misrepresentation.
Muluki Civil Code, 2017

Explanation: The following acts shall be deemed misrepresentation: -

(1) Giving false particulars or facts without reasonable basis,

(2) Misleading a party to his detriment,

(3) Causing a mistake regarding the subject matter of the contract,

(4) Leading a person to believe that a contract is about one subject matter while making it about another.

(3) In respect of a contract that may be avoided under this Section, the following shall apply: -

(a) The party induced to make the contract may, without avoiding the contract, demand that his position be restored to what it would have been had the contract not been made,

(b) If a person makes a contract with a person under his influence and who can be made to act according to his will, the burden of proving that such contract was not made under undue influence shall lie on the party who is alleged to have exerted such undue influence.

(4) A voidable contract shall be enforceable like a valid contract until it is avoided.

(5) If a contract that is voidable under this Section is avoided by a court, acts done under such contract before avoidance shall not be affected.

(6) If a contract is avoided under this Section, the lawful right or interest of an innocent third party shall not be adversely affected merely by reason of such avoidance. 519. Unenforceable contracts: (1) A contract that cannot be enforced by a court shall be deemed an unenforceable contract.

(2) Even if a contract has been concluded following the procedure under Chapter 2 of this Part, the following contracts shall not be enforceable by a court: -

(a) A contract required by law to be in writing but not in writing,

(b) A contract for which there is a provision requiring compliance with a specific formality, procedure, or registration with a body, but such formality, procedure, or registration is not completed,

(c) A contract made on behalf of another person regarding a matter for which such person did not grant authority, or exceeding the authority granted. 520. Limitation period: A person suffering loss from any action or proceeding conducted under this Chapter may file a lawsuit at any time in the case of a void contract, within one year from the date on which the cause for avoiding the contract arose in the case of a voidable contract, and within two years from the date on which the cause of action arose in the case of other contracts. Chapter-4
Provisions relating to Performance of Contracts

521. Obligation under the contract must be performed: Each party to a contract must perform their respective obligations under the contract. 522.
Muluki Civil Code, 2017

Chapter-4
Provisions relating to Performance of Contracts

521. Obligation under the contract must be performed: Each party to a contract must perform their respective obligations under the contract. 522. Mutual performance of contract: (1) In a contract where the parties are required to perform their obligations simultaneously, if one party shows conduct or intention fundamentally not to perform his obligation, the other party shall not be required to perform his promise.

(2) If a priority order for performance of any promise is specified in the contract itself, it shall be followed accordingly; if no such order is specified, the person who ought to perform his promise first according to the nature of the contract shall perform it first.

(3) If, in a contract involving mutual promises, one promise cannot be performed without the other being performed, the party who has suffered loss or damage due to the failure of the other party to perform his promise, rendering performance by the other party impossible, may recover such loss or damage.

(4) In a contract where parties are required to perform their obligations simultaneously under subsection (1), if one party prevents the other from performing such contract, the other party unable to perform may have such contract rescinded and also recover any loss or damage caused by such rescission.

(2) If a contract is made jointly by two or more persons to do or not to do any act, all such persons who have made the contract may jointly demand the performance of the contract, unless otherwise provided in the contract. 531.