Jayanta (Service) 15 September 2011

Clarity on contract act

We have awarded some contracts on an individual / sole proprietor. However, pending completion of the contracts, he suddenly passed away. If some one from his family wants to give Notarised Declaration, will it be safe to releaqse the payment.What about procedural steps if want to continue contract with new person in the same family for these contracts OR termination of contract -consequent steps.

Please advise vis a vis Contract Act / Coirt judgement etc.

Regards,

J Banerjee

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2 Replies

Raj Kumar Makkad (Adv P & H High Court Chandigarh) 15 September 2011

Payment should be released only on receiving Succession cerificate crom compeent court as this may creae a problem in fuure. Though contract was issued to the individual and i ges ended on his death bu even if you deem i fit to provide afresh or continue same conrac to any family member of deceased conractor, you have liberty to do so as there is no law to deal with such situation.