Transactions are very important in business and practical life. Buying a home, starting a new business, and building a home are often not possible without small transactions. Many are forced to deal with their relatives and deal with them. By dealing with people who are well-behaved, the small needs of practical life can be easily met, the business can earn good profits, get out of debt, and raise the economic level quickly.
However, if a transaction is done with a person with wrong intentions, it can lead to financial and mental stress, which can lead to huge losses, and business and business can be disrupted. You may have to go to court to seek legal redress for damages.
Transactions are usually done with close relatives, friends, and business people. Because of a good and trustworthy relationship, some people transact unsafely. Such a transaction may cause embarrassment in the future if the relationship between the two parties deteriorates for any reason. Lack of proof can lead to legal problems and the transaction amount can sink.
The law cannot take action on the basis of the oral statement alone without written evidence. Therefore, in order to be legally secure, no matter how close the relationship is, financial transactions should not be done without written proof.
What is the legal system?
Paragraph 15 of the Civil Code 2074 explains the legal provisions to be followed regarding transaction behavior. The law defines a transaction between two or more persons as a condition in which any amount or item is taken/given to them as a transaction between them.
What are the Instruments?
Although it is traditionally understood to be a document written in Nepali paper including Kapali Tamsuk, bond deed paper, land deed paper, contract agreement, house renovation agreement paper of various households, which is commonly used in transactions, it is understood as a written instrument.
Prohibition of cash transactions
To make the transaction effective and to establish legal proof, the transaction should be done through check as much as possible. If you do not have the formal instrument to make a cash transaction by hand, there may be no proof of the transaction. However, when transacting in the name of the debtor through a checking bank or financial institution, the record will also include the name of the person who took the money, so if necessary, it can be used as written evidence.
Similarly, in case of payment, the voucher can be deposited in the account of the concerned person or organization and kept as proof when required.
Proof of Sava or interest payment
If you are unable to pay the principal and interest of the transaction amount at once and have to pay it again and again, you should not forget to pay the bill every time you pay/pay the amount. Although it is impossible to make a formal reimbursement, if you are a personal person, you should sign a small piece of paper saying, “I understand this amount with Flanno.”
How to seek legal redress
There is a legal provision that if one of the parties violates the condition or does not pay the amount due, the victim or the aggrieved party can file a case in the court through a legal practitioner and recover the amount and interest as per the law.
As the court has decided that the lender will also get interested, the lender will also get interested from the debtor till the date of payment as per the decision. No matter what is written in the instrument, the court cannot pay more than 10 percent annual interest as per the law. Also, if any compensation is to be taken, a claim must be made in the affidavit. In that case, the court may use its discretion to pay full or partial compensation as demanded.
When the case is registered, the aggrieved party or plaintiff has to pay the court fee as prescribed by the court. If the case is decided and the plaintiff wins, the court will recover the amount from the losing party.