3. If the landlord and tenant terminate the contract by mutual agreement, this article aims to inform readers of the new formalities required by the Code to sign contracts and ensure the enforcement of contracts by Nepalese courts. This article only covers commercial transactions and excludes family law, joint property, trusts and other matters. If the agreement provides that the tenant may sublet all or part of the rented house, he/she may sublet all or part of such a house to another person, subject to the agreement. With the tenant`s photo affixed to the contract, the contract must also be signed by at least two witnesses from each party. A copy of the contract is kept by both the landlord and the tenant. Unless the monthly rent of the house does not exceed twenty thousand rupees, when renting a house, its owner must enter into a written agreement with the tenant, which lists the following issues: * In case of termination of the house rental agreement, it is the tenant`s obligation to return these properties in good condition. These contracts cannot be challenged by Nepalese courts if they are not in writing. The necessary modification of the home rental contract can be made by mutual agreement between the parties. Where such an agreement is registered with the authority concerned, the amendment shall be made on request to that authority. The previous Muluki Ain interpreted strict enforcement formalities that do not apply to contracts concluded under the Contracts Act and only to the deed. However, the new Code expressly provides that enforcement formalities also apply to contracts, acts, powers and other documents.

In principle, the following enforcement formalities apply. An oral contract or conduct of the parties is sufficient to prove and enforce such transactions. * If the contract does not provide for a method of payment or payment, the tenant must pay the rent to the landlord within 7 days of the end of each month. c) If the owner is not an act contrary to the agreement or the governing law, the Muluki Civil Act, 2017 (2074) and the Muluki Civil Procedure (Code) Act 2017 (2074) (together referred to as “Code”) will come into force from 17 August 2018. The Code makes substantial changes to contractual laws and to the formalities for the execution of contracts, acts and other documents. .