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CA Foundation · Business Laws · The Indian Contract Act, 1872

Tara contracts to sing at Uday's wedding reception on 10 December for Rs 60,000. On 8 December, Tara dies in an accident. What is the effect on the contract?

The contract stands discharged because it depended on Tara's personal skill as a singer. When the promisor dies, a contract of personal service or skill cannot be performed by another and ends by impossibility, so her legal representatives are not bound to perform it.

  1. AThe contract binds Tara's legal representatives, who must arrange a substitute singer
  2. BThe contract is discharged, as it was a contract involving personal skill that cannot be performed by anotherCorrect
  3. CThe contract is voidable at Uday's option only
  4. DThe contract remains valid and Uday can claim damages from Tara's estate

Explanation

Where a contract depends on the personal skill or ability of the promisor, it terminates on the promisor's death, since the performance cannot be done by another. This is an instance of supervening impossibility. Option A would apply only to contracts where performance does not need personal skill. Hence no damages lie against the estate.

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