Can a court stop a party from doing something that would defeat a contract?

Contracts & Business Law

Yes. Section 541 allows an affected party to seek a court order stopping conduct that would make contractual performance impossible where the nature of the contract justifies such protection.[3]

This is distinct from a final damages claim and can be important where the threatened act would make later relief ineffective.

Sources

  1. Nepal Law Commission, **National Civil Code, 2074**, ss. 540–541, specific performance and preventive relief. View source
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