Section 37 of ICA : Section 37: Obligation Of Parties To Contracts

Explanation using Example

Imagine you hire a caterer to provide food for a party you're hosting next month. According to Section 37 of The Indian Contract Act, 1872, the caterer is legally obligated to either perform the service or offer to perform it by preparing and serving the food as agreed. If the caterer fails to do so without a valid excuse recognized by law, they would be in breach of contract.

Example Scenario

• (a) You've paid an advance to the caterer for your party. If the caterer suddenly passes away before the event, their legal heirs or representatives are required to fulfill the catering commitment or return your advance, depending on the terms of the contract and practicality of the service continuation.
• (b) If the contract was for a personal performance, say you hired a specific celebrity chef for their unique skills, and they pass away, the contract typically cannot be completed by someone else. In such cases, the contract may be considered void due to the personal nature of the service.