A substantial breach can permit cancellation under section 535, but not every minor breach automatically gives a right to terminate. The contract terms, seriousness of the breach, notice requirements and whether further performance remains possible should be reviewed first.[1]
Wrongful termination can itself create legal exposure, so the legal basis for termination should be documented.
Sources
- Nepal Law Commission, **National Civil Code, 2074**, Part 5, including ss. 504–541 and special contract chapters. View source