Personal Contract Law and Legal Definition
Personal contract is a contract that binds a person but does not include such person's heirs or assignees since the contract requires a personal performance that does not have an adequate substitute. A personal contract can also refer to a contract that binds a representative as an individual instead of binding the person or entity represented. For instance, unless expressly agreed otherwise, contracts made by a decedent's personal representative traditionally bind the representative, not the estate.
In another context, a personal property means a real-property-related contract treated as personal property, not as a substitute for the real property. Oil-and-gas royalty contracts and property-insurance policies are examples of a personal contract.
