A contract of personal nature is dependent on what?

Study for the CA Foundation Business Law Exam. Practice with multiple-choice questions, review detailed explanations, and ace your exam!

A contract of personal nature is primarily dependent on individual skills or attributes because such contracts typically involve the unique abilities, talents, or characteristics of a specific person. These contracts are often not easily transferable to someone else because they require a certain level of personal performance or involvement that is unique to the individual. For instance, contracts for services rendered by artists, athletes, or specialists hinge on the specific skills and personal attributes of the party involved, making those individual qualities essential to the agreement.

The other options do not capture the essence of what makes a contract personal. Financial compensation is a general aspect of contracts but isn't exclusive to personal nature contracts. Similarly, while specific commercial benefits can be present, they don’t define personal contracts. Lastly, although legal frameworks are necessary for any contract's enforceability, they do not influence the personal nature of the agreement itself. The distinctive attribute of contracts of personal nature lies in the individual characteristics that the parties bring to the agreement.

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