kohli
The rights of a surety in relation to the principal debtor serve as essential safeguards, ensuring that the surety is not unduly encumbered when discharging the principal debtor’s obligations. These rights empower the surety to reclaim any amounts disbursed, seek restitution, and be relieved of liability under specific circumstances, such as when the principal debtor … Read more
A surety is an individual who provides a guarantee for the performance or repayment of a debt or obligation owed by another party, known as the principal debtor, in the event that the principal debtor defaults. The Rights of Surety are safeguarded under the Nepal Contract Act, 2056 (2000). These provisions ensure that the surety … Read more
A contract is a legally binding agreement between two or more individuals or entities, obligating them to perform or refrain from specific actions. As defined by the Supreme Court of Nepal, a contract is characterized as “an agreement of two or more parties with conditions.” In a contract, the involved parties establish their own rights … Read more
Free consent is a crucial principle in contract law, guaranteeing that the individuals involved in a contract do so willingly and possess a comprehensive understanding of the terms to which they are consenting. This principle is vital for the validity and enforceability of a contract. As outlined in Section 14 of the Nepal Contract Act, … Read more
A Void contract refers to an agreement that is inherently invalid from its inception. It fails to include one or more critical components, such as a lawful objective, consideration, or mutual agreement. Consequently, it is regarded as if it never occurred and cannot be upheld by either party involved. Conversely, a voidable contract is one … Read more
A Pledger is an individual who provides their asset as collateral for a loan or obligation through a pledge agreement. Although the pledger transfers possession of the pledged asset to the pledgee (the lender or creditor), they retain certain rights that are crucial for balancing the interests of both parties. The primary rights of the … Read more
A Bailee refers to an individual or entity that receives goods from another party, known as the bailor, under a bailment agreement. The bailee is tasked with the responsibility of protecting the goods and ensuring their return according to the stipulated terms. Below are five key responsibilities of a bailee: Obligation to Exercise Reasonable Care … Read more
Surety refers to the individual who provides the guarantee. The individual for whom this guarantee is provided is known as the principal debtor. The recipient of the guarantee from the surety is termed the creditor. Guarantees can be established either verbally or in written form. A surety, acting as a guarantor for the principal debtor, … Read more
Consideration can be defined as the value that one party offers in exchange for the promise of another party. A contract is deemed legally binding only when both parties are obligated to provide something of value to each other. This value exchanged is referred to as consideration, and it must be lawful to be recognized … Read more
LAW OF CONTRACT A contract is defined as a legally binding agreement between a minimum of two parties to perform or refrain from performing certain actions. As articulated by A.J. Salmond: “A contract is an agreement that establishes and delineates obligations between two or more parties.” ESSENTIAL ELEMENTS OF A ENFORCEABLE AND VALID CONTRACT A … Read more