What happens to money or benefits already exchanged if a contract is cancelled or void?

Contracts & Business Law

Section 538 generally requires adjustment and restoration of money, goods, services or benefits already exchanged when a contract is cancelled, becomes invalid or is declared void, subject to the circumstances and applicable law.[1]

Where a service or benefit cannot literally be returned, reasonable monetary value can become relevant.

Sources

  1. Nepal Law Commission, **National Civil Code, 2074**, Part 5, including ss. 504–541 and special contract chapters. View source
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