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Rule 171
Breach of contract

(1) No contract shall be terminated or abandoned in the middle of the contract period after the contract has been accepted according to this regulation, except for the violation of any condition of the lease acceptance or for not doing any work required to be done according to such condition.
(2) If a contractor collects tax at a rate higher than the rate specified by the local body or if he collects tax, service charge or duty on goods not mentioned in the contract or if a local body collects tax in such a way that it is double, such amount shall be collected from such contractor. The concerned person shall be returned by the concerned local body.
(3) If the activities mentioned in sub-rule (2) are repeated again, the contract of such contractor will be broken and the bond will be confiscated. In this way, even if the bond is confiscated, if the amount received during the settlement of the new contract is less than the amount of the previous one and if the amount spent during the settlement of the new contract is not recovered, the government will Similarly, his name will be blacklisted and information will be given to other local bodies and the contractor's licensing office of the Government of Nepal.
(4) If the contract is broken according to sub-rule (3), if any person or firm is found to execute the contract for the remaining period of the same financial year, the contract can be awarded after charging the fee according to the previous contract rate and collection schedule.
(5) In case of breach of contract in accordance with sub-rule (3), the loss caused to the local body and the balance to be collected by the local body from the contractor, including ten percent interest, shall be recovered from the contractor in the same manner as the government balance. However, if the contractor is unable to perform the contract due to circumstances beyond his control, the council of the local body may waive the appropriate amount from the amount to be recovered in consultation with the relevant revenue advisory committee.
(6) If the local body violates any of the conditions mentioned in the lease or customs contract given to the contractor after settling the contract, or if the contract is terminated before the contract period is paid, the local body shall bear the damage caused to the contractor.