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CSEET · Business Laws and Management · Elements of Law of Contracts

Under the Indian Contract Act, 1872, Suresh agreed to deliver goods to Tina on a fixed day against payment of ₹1,000. Suresh dies before that day. What is the position?

Suresh's representatives are bound to deliver the goods and Tina is bound to pay ₹1,000 to them. Promises bind the representatives of a deceased promisor unless the contract shows a contrary intention, and a simple delivery contract involves no personal skill.

  1. AThe contract ends automatically on Suresh's death
  2. BSuresh's representatives are bound to deliver and Tina is bound to pay, unless a contrary intention appearsCorrect
  3. COnly Tina is bound, as Suresh's liability ends at death
  4. DThe contract becomes voidable at the option of Tina only

Explanation

Promises bind the representatives of the promisors in case of death before performance unless a contrary intention appears in the contract. The contract is not one of personal skill, so Suresh's representatives must deliver and Tina must pay them ₹1,000.

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