Skip to content

CMA Foundation · Fundamentals of Business Laws and Business Communication · Performance of Contracts

Ramesh Traders promises to deliver 100 bags of rice to Sunita Stores on 1 March against payment of Rs. 50,000. Ramesh, the sole proprietor, dies on 20 February. The contract contains no clause about death. What is the legal position under Section 37?

Ramesh's legal representatives are bound to deliver the rice, and Sunita Stores must pay the Rs. 50,000 to them. Section 37 says promises bind the representatives of a deceased promisor unless the contract shows a contrary intention, and none appears here.

  1. AThe contract is discharged and neither side is bound
  2. BRamesh's representatives are bound to deliver, and Sunita Stores is bound to pay themCorrect
  3. COnly Sunita Stores is bound, since Ramesh has died
  4. DSunita Stores may enforce delivery only against Ramesh's creditors

Explanation

Under Section 37, promises bind the representatives of the promisor on death before performance unless a contrary intention appears. Illustration (a) shows that the representatives must deliver and the promisee must pay them. Option A wrongly treats the contract as ended by death, which applies only to contracts of personal skill.

Did you get it right without looking?

One question tells you little. A timed set on Performance of Contracts shows your real accuracy, how long you take and where you lose marks.

Practise Performance of ContractsFree diagnostic mock

More Performance of Contracts questions