Which type of contract relies on individual skills or attributes?

Prepare for the CA Foundation Business Law Exam with our comprehensive quiz. Utilize flashcards and multiple-choice questions, each complete with hints and explanations. Ace your exam confidently!

The type of contract that relies on individual skills or attributes is a contract of personal nature. This type of contract is typically formed when the obligations of the contract are dependent on the unique qualities, skills, or abilities of the individuals involved. For instance, contracts for personal services, such as those formed by artists, consultants, or professionals who provide specific expertise, fall into this category. The parties to this type of contract are usually chosen for their distinct competencies or characteristics, emphasizing the importance of personal involvement in fulfilling the terms of the agreement.

In contrast, standard commercial contracts often involve generic terms that can be fulfilled by any party meeting the defined criteria, without reliance on individual skills. Third-party contracts usually focus on the rights and obligations of parties not directly involved in the agreement, while energy performance contracts have a specific focus on energy efficiency and performance metrics, not individual attributes. Hence, the nature of personal contracts distinctly highlights the reliance on individual skills or attributes, making this the correct choice.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy