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Legal Glossary
The words you will meet in contracts, court papers and government forms, each with a formal definition and a plain-English explanation.
40 terms · A to Z
40 terms
A written statement of facts that the person making it swears or affirms to be true before an authorised officer such as a notary or court official. It can be used as evidence in court and other official proceedings.
A formal request asking a higher court to review and change the decision of a lower court. In Nepal, appeals generally move from District Court to High Court and then to the Supreme Court.
A private method of resolving disputes in which the parties agree to let one or more neutral arbitrators hear the case and issue a binding decision. It is commonly written into commercial contracts as an alternative to going to court.
The internal rulebook of a company, setting out how directors are appointed, how meetings are held, how shares are transferred and how decisions are made. It is filed with the Office of the Company Registrar at incorporation.
The release of an accused person from custody while a criminal case is pending, usually on the condition that money or a guarantee is deposited and that the person attends court when required.
A legally binding agreement between two or more parties that creates obligations enforceable by law. A valid contract normally requires an offer, acceptance, consideration and the parties' intention and capacity to be bound.
The person, company or body against whom a civil claim is brought or who is accused in a criminal case. The defendant responds to the allegations made by the plaintiff or the prosecution.
The careful investigation of a business, property or person carried out before entering into a transaction, to confirm facts and identify legal, financial or regulatory risks.
An arrangement in which money or documents are held by a neutral third party and released only when agreed conditions are met. It is used to protect both sides in property sales and business acquisitions.
A person who holds a position of trust and is legally required to act in the best interests of another, such as a company director towards the company or a trustee towards beneficiaries.
A contract clause that excuses a party from performing its obligations when extraordinary events beyond its control, such as earthquakes, floods, war or government orders, make performance impossible.
A court-ordered process by which money owed to a debtor by a third party, typically wages held by an employer or funds in a bank account, is redirected to pay a judgment creditor.
A constitutional writ requiring a person who is detaining another to bring the detainee before the court and justify the detention. If the detention is unlawful, the court orders release.
A session before a court, tribunal or administrative body at which the parties present evidence and arguments on a case or a specific issue within it. Hearings may be preliminary, interim or final.
A contractual promise by one party to compensate another for specified losses, damages or liabilities. Indemnity clauses allocate risk between the parties before any loss occurs.
A court order requiring a person to do, or refrain from doing, a specific act. Interim injunctions preserve the position of the parties until the case is finally decided.
The legal authority of a court or body to hear and decide a particular type of case, or cases arising in a particular area. A case filed in the wrong court may be dismissed for lack of jurisdiction.
The land ownership certificate issued by the Land Revenue Office in Nepal, recording the registered owner, plot number, area and location of a parcel of land. It is the primary proof of title in property transactions.
A legal right or claim over another person's property that secures the payment of a debt or performance of an obligation. The property cannot usually be sold free of the lien until the debt is settled.
The maximum time allowed by law for starting a legal claim after the event giving rise to it. Once the period expires, the claim is usually barred even if it would otherwise have succeeded.
The process of resolving a dispute through the courts, from filing a claim through hearings and evidence to judgment and any appeal.
The district-level Land Revenue Office in Nepal responsible for registering land transactions, maintaining ownership records, issuing land ownership certificates and collecting land registration fees and revenue.
A voluntary process in which a neutral mediator helps the parties negotiate their own settlement. Unlike arbitration, the mediator does not impose a decision. Nepali courts frequently refer civil and family cases to mediation.
The founding charter of a company, stating its name, registered office, objectives, authorised share capital and the liability of its members. It is filed with the Office of the Company Registrar alongside the Articles of Association.
A legal arrangement in which property is pledged as security for a loan. The lender may enforce its rights against the property if the borrower fails to repay. In Nepal, mortgages over land are recorded at the Land Revenue Office.
A failure to take the reasonable care that a prudent person would take in the circumstances, causing loss or injury to another. It is the most common basis for civil liability in tort.
A licensed notary public authorised to certify documents, attest signatures, administer oaths and prepare certified translations. Notarised documents are widely required for property, company and immigration matters in Nepal.
A law issued by the President on the recommendation of the Council of Ministers when the federal parliament is not in session. An ordinance has the force of an Act but lapses unless approved by parliament within the constitutional time limit.
A unique taxpayer identification number issued by the Inland Revenue Department of Nepal to individuals and businesses. It is required for filing tax returns, issuing invoices, opening business bank accounts and most formal transactions.
The party who starts a civil lawsuit by filing a claim against another party, seeking a remedy such as damages, an order or a declaration of rights.
A written authority by which one person (the principal) appoints another (the attorney or agent) to act on their behalf in legal, financial or property matters. In Nepal it is commonly used by people living abroad to manage land transactions.
A principle established in an earlier court decision that guides or binds courts deciding later cases with similar facts. Interpretations of law by the Supreme Court of Nepal are binding on all lower courts.
The legal process of proving a will and administering a deceased person's estate, including settling debts and distributing property to heirs in accordance with the will or the law of succession.
A written law enacted by the federal parliament or a provincial assembly, as distinct from regulations, ordinances or court-made law. Statutes are published in the Nepal Gazette.
An official notice issued by a court requiring a person to appear before it or to respond to a claim within a stated time. Failure to respond to a summons can lead to a decision being made in that person's absence.
Evidence given by a witness under oath or affirmation, either orally in court or in a written sworn statement. Testimony is weighed alongside documents and other evidence.
A civil wrong, other than a breach of contract, that causes harm or loss to another person and for which the law provides a remedy, usually compensation. Negligence, defamation and trespass are common torts.
The final decision of a court on the questions of fact and law in a case, determining guilt in a criminal matter or liability in a civil one. In Nepal, verdicts are delivered by judges rather than juries.
A promise in a contract that a statement of fact is true or that goods or services will meet a stated standard. If a warranty is breached, the injured party may claim damages.
A formal written order issued by a court in the exercise of its extraordinary jurisdiction. Under the Constitution of Nepal, the Supreme Court and High Courts can issue writs such as habeas corpus, mandamus, certiorari and prohibition to protect fundamental rights.