Chapter- 11 Execution of Contract and Obligation Arising out of the Contract

section 75 : Reciprocal compliance with contract

Estimated reading: 2 minutes 85 views

1) In case a contract has been concluded with a provision requiring both parties to simultaneously fulfill their respective obligations, and in case one party fundamentally shows a conduct or intention of not fulfilling his/her obligation the other party shall not be required to fulfill his/her promise.

2) In case the order of priority relating to the fulfilment of any promise has been specified in the contract itself, it shall be fulfilled accordingly, and in case no such order of priority has been specified, the
a party who is required to do so first, according to the nature of the contract, shall fulfil it.

3) In case one promise can not be fulfilled without fulfilling another promise under any contract containing reciprocal promises, the party which can not execute the contract because of the failure of the other party to fulfil its promise may recover the loss or damage caused by the failure of the other party to execute the contract.

4) In case a contract of the type mentioned in Sub-section (1) has been concluded, and any party obstructs the other party from executing the contract, the party which becomes unable to execute the contract may the contract cancel and also recover any loss or damage suffered by him/her from the cancellation of the contract in that manner.

Share this Law

section 75 : Reciprocal compliance with contract

Or copy link

Discover Nepal's laws effortlessly. Our user-friendly platform simplifies legal understanding and accessibility, serving individuals throughout the country.