• Nepal follows a federal democratic system based on 2015 A.D. constitution.
• Nepal’s legal system is based on a combination of customary law, religious practices and modern legal principles.
• The Muluki Ain (Civic code) governs civil matters like contracts, property and family relation.
• There is separation of power in government i.e. Legislative, Executive and Judiciary.
• Court includes Supreme Court, High Court and District Court.

1.2 Essentials of a valid contract

Valid contract is a legally accepted agreement between parties that follows all the necessary rules, regulation and requirements.

• Offer and Acceptance: One part purposes (offer) terms and other agrees (accept).
• Intention to create legal relations: Both parties to be legally bound.
• Lawful consideration: There must be something of value exchanged between parties.
• Capacity: Both parties must have the legal ability to enter into a contract.
• Free consent: Agreement are made without pressure, fraud or mistake.

1.3 Difference between Void and Voidable contracts

1.4 Significance of a contract

• Agreement Clarity: Clearly defines terms, reducing confusion.
• Legal Binding: Creates enforceable obligations between parties.
• Dispute Prevention: Minimize conflicts by setting clear expectations.
• Business Assurance: Supports secure transactions and deals.
• Responsibility: Holds parties accountable for their commitments.
• Protection: Safe guard interest and rights of parties.
• Proof: Provide written evidence of agreement.

1.5 Factors to be considered in preparing a contract document

• Use simple and precise language to avoid misunderstandings.
• Clearly define scope of work.
• Enlist terms and condition which includes payment terms, deadlines and other condition.
• Define duties of each party involved.
• Address the protection of sensitive information.
• Specify which law governs the contract.
• Allow for future changes if needed.

1.6 Interpretation of contractual clauses

• It involves understanding and explain the meaning of specific term and provision within a contract.
• Ensure clarity to everyone about their right and duties.
• Prevents dispute and misunderstanding.

`1.7 Duties and Liabilities of designers and professionals

Duties of designer and professionals:

• Provide service with skillful work.
• Be truthful and transparent in all deal.
• Prioritize client needs and interest.
• Follow law and regulation relevant to profession.
• Keep client information private.

Liabilities of designers and professionals:

• Responsible for their mistake or error.
• May face legal action for professional misconduct.
• Responsible for damages caused by their negligence.
• Professional reputation can suffer due to poor work.
• Liable for compensating clients for losses due to professional mistake.

1.8 Conditions for establishment of professional negligence

1. Duty:

• Professionals have a duty to perform their task with care.
• Provide certain standard of service.

2. Breach:

• Professional failed to meet the expected standard of service.

3. Proximity cause:

• Professional action directly cause harm or impact the service.

4. Damage:

• Harmed party suffered losses due to the professional’s actions.

1.9 Types of Business Enterprises

1. Sole proprietorship:

• Owned and operated by one person.
• Owner makes all decisions and takes all profit.
• Owner is responsible for debt and losses.

2. Partnership:

• Managed and owned by two or more individual.
• Owners share decision making and profits.
• Partner share debts and responsibilities.

3. Limited company:

• Exits as a separate legal entity from its owners.
• Owner’s personal assets are protected from business debts.
• Ownership divided into shares held by shareholders.

2.0 Intellectual property right

1. Copyright:

• Idea protection.
• Safeguard original creation.
• Gives creator control over reproduction, distribution and public display.
• Lasts for creator’s lifetime plus a specific period.

2. Patent:

• Invention protection.
• Secure new and useful invention.
• Grants exclusive rights to use, make or sell the invention.
• Usually last around 20 years.

3. Design:

• Visual protection.
• Covers the appearance of products like shapes.
• Grants protection against copying the design visual aspects.
• Last for several years.

4. Trademarks:

• Brand protection.
• Protects symbol, name that disguise products or service.
• Helps consumers recognize and trust a specific brand.
• Can be renewed timely as its in use.

References:

• Giddens, A. (2009). Sociology. Polity Press.
• Kumar, A. (2014). Engineering Ethics and Human Values. Laxmi Publications.
• Schaefer, R.T. (2018). Sociology: A Brief Introduction. McGraw-Hill Education.
• Manual of Engineering Professional Practice (Nepal Engineering Council)

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