Act of nation and section that defines about business law

Chapter 1  

Chapter 2  

Chapter 3  

Chapter 4  

Chapter 5  

Chapter 6  

Chapter 7 Free consent

According to Nepal contract act 2056 sec. 2.c, “the consent given by the person to whom a proposal has been presented in the substance of proposal.”

Points to remember:

·        Not under the control of anyone else or able to do what ones want

·        For the lawful consideration

·        Not to lose anyone of the contracting parties

·        Contract is totally made with free consent when it is not made by coercion, mistake, fraud, undue influence, misrepresentation.

Coercion:

In British- coercion is also known as Duress

According to Nepal contract act sec.14,”To detain or threaten to detain property or to injure or threaten to injure life or reputation or to commit, to threaten to commit anything forbidden by law in force in Nepal with the intention of a person to enter into a contract against his will.”

Points:

·        The intention of compelling a person to enter into a contract against his will or interest

·        There should be employing fear, physical compulsion.

·        The threatening to withhold any property.

·        The threatening to injure life, body or reputation.

·        Taking any action contravention of law in force.

·        The contract done by the fear or threatening of other is legally void.

Undue influence: (moral coercion)

According to Nepal contract act 2056sec 14 (b), “undue influence means influence exercised by a person upon another person who is under his influence for personal advantages or interest with an intention to have unfair benefit.”

Points:

·        Real or apparent authority  (merchant-servant) (principal-teacher)

·        Fiduciary relationship (lawyer-client) (Doctor-patient)

·        Mentally or physically weak person (older-younger) (disable person)

Presumption of undue influence: (Assumption)

A contract can be deemed to have made by undue influence if:-

          ·          Consideration is inadequate.

          ·          There is an inequality between the parties in social status.

          ·          A greater sum demanded than the actual sum.

          ·          There is absence of consent for weak party.

·        The burden of proof lies on the aggrieved party.

Misrepresentation

According to Nepal contract act 2056, “Submission of false statement on any matter without any reasonable basis of the fact for agreement.”

Fraud:

According to Nepal contract act 2056 sec 14 (1.c) fraud includes:

        i.            With intention to deceive other only for agreement

      ii.            To force to believe in untrue thing

    iii.            The act which is declared as fraudulent by the law of nation.

Chapter 8