What can I do if a business partner breaches an agreement?

Corporate Legal Consultancy

If a business partner breaches an enforceable agreement, the affected party may seek contractual and statutory remedies under Nepal's National Civil Code. Depending on the breach, these can include termination, damages, restitution or specific performance.

What counts as breach?

The Civil Code recognizes breach where a party fails to perform, indicates that it will not perform, or acts in a manner showing inability to perform.

Possible remedies

  • demand performance
  • issue formal notice
  • suspend reciprocal performance where legally justified
  • terminate for substantial breach
  • claim actual loss
  • seek specific performance where damages are inadequate
  • arbitrate where a valid arbitration agreement applies
  • file an appropriate civil claim

Preserve agreements, invoices, bank records, delivery records, messages and evidence of loss.

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