Nepal's Civil Code addresses compensation where parties have predetermined loss or an amount associated with breach. The recoverable amount is not automatically whatever figure appears in the contract; the statutory compensation framework and reasonableness of the claim remain relevant.[1]
Commercial contracts should clearly distinguish compensation mechanisms, interest, service credits and other contractual remedies.
Sources
- Nepal Law Commission, **National Civil Code, 2074**, Part 5, including ss. 504–541 and special contract chapters. View source