Skip to content

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

Under Section 37, which of the following correctly describes the effect of the death of a promisor before performance?

Promises bind the representatives of a promisor who dies before performance, unless a contrary intention appears from the contract. Death does not automatically discharge a contract, and there is no notice requirement or restriction to money contracts in Section 37.

  1. AEvery contract is discharged on the promisor's death
  2. BPromises bind the promisor's representatives unless a contrary intention appears from the contractCorrect
  3. CPromises bind the representatives only if the promisee gives written notice within the contract period
  4. DOnly contracts for payment of money survive the promisor's death

Explanation

The second paragraph of Section 37 states the general rule that promises bind the representatives of deceased promisors unless a contrary intention appears from the contract. There is no notice requirement and no limit to money contracts. Contracts of personal skill are the exception through contrary intention.

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