What term describes services that cannot be performed if the service provider dies before performance?

Study for the CLEP Business Law Test. Engage with flashcards and multiple choice questions, each question has hints and explanations. Prepare effectively for your exam!

The term that describes services that cannot be performed if the service provider dies before performance is known as a personal services contract. These types of contracts are characterized by the unique qualities of the service provider. They typically involve tasks or services that require the specific skills, talents, or expertise of an individual, making the identity of the service provider crucial to the agreement.

In a personal services contract, if the provider were to pass away, the contract would be rendered void since the specific individual with the required abilities is no longer available to fulfill the obligations outlined in the contract. This contrasts with other types of contracts, such as commercial contracts or mutual contracts, which may involve services or goods that can be provided or fulfilled through alternative means or by different parties.

Understanding this distinction is important in business law because it highlights the personal attributes involved in certain agreements and the implications for contractual obligations when key individuals can no longer perform their roles.

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