Legal Definitions - personal services

Definition: Personal services refer to the unique abilities and talents of individuals that cannot be replaced by another person's abilities. These services are highly valued and are different from general labor. Examples of personal services include actors, singers, and athletes.

In contract law, a contract for personal services imposes a duty to render the service and forbear from rendering the service to a competitor. However, a promise to render personal service will not be specifically enforced, according to the Restatement (Second) of Contracts § 367. This is because it may not be desirable to further personal associations between parties if there have already been disputes leading to a loss of confidence and loyalty. Additionally, the quality of the personal services performance may be lowered if an individual's sole motivation for performing is because they are compelled to fulfill a contract obligation under law.

For example, an actor may have a contract with a movie studio to star in a film. If the actor breaches the contract and decides to work on a competing film, the studio may not be able to force the actor to fulfill their obligation. This is because the studio may not want to continue working with someone who has breached their trust, and the actor's performance may suffer if they are forced to fulfill the contract.

In some states, such as California, if a company's primary activity is the performance of personal services and owner employees substantially perform those personal services, they may be classified as a special type of corporation called a personal service corporation.