Contracts that may not be enforced specifically

Contracts that may not be enforced specifically

Contracts that may not be enforced specifically

1. Introduction:

Specific performance is the actual performance of a contract. the plaintiff is entitled to have the specific thing wherefore he has contracted. there are some circumstances when a contract cannot be specifically enforced.

2. Definitions:

According to Doemory:

Specific performance of contract consists in the contracting party is exact fulfillment of the obligation which he has assumed in his doing or omitting the very act which he has undertaken to do or not to do.

According to Fry:

The specific performance of a contract is its actual execution according to its stipulations and terms and is contrasted with damages or compensation for the non-execution of the contract.

3. Relevant Provisions:

Sec. 21 of specific relief act.

4. Doctrine of specific performance of a contract:

The specific performance of a contract is its actual execution according to its stipulations and terms and is contrasted with damages or compensation for no execution of the contract. 

5. Exceptions to general rule:

The exception to the general rule all contained in Sec. 21 all the specific relief act.

6. Contract which cannot be specifically enforced:

Following are the contracts which cannot be specifically enforced.

I. Contracts where compensation is an adequate relief:

A contract for non-performance of which compensation in money is an adequate relief.

II. Contracts running into minute or numerous details:

A contract that runs into such minute or numerous details.

III. Contracts dependent upon personal qualification:

A contract dependent upon personal qualification cannot be enforced.

IV. Contracts dependent upon violation of the parties:

A contract is dependent upon the violation of the parties and cannot be enforced. 

V. Uncertainty of terms:

A contract is a term that the court cannot find with reasonable certainty.

VI. Revocable:

A contract which is in its nature revocable.

VII. Contract made by trustee more than their power:

A contract made by trustees either more than their power or in breach of their trust.

VIII. Contract by or on behalf of a corporation or public company created for special purposes:

A contract made by or on behalf of a corporation or public company created for special purposes, or by the promoters of such company, which is more than its powers. 

IX. Contracts of performance of a continuous duty existing over a longer period than three years:

A contract, the performance of which involves the performance of a continuous duty extending over a longer period than three years from its date.

X. Non-existence of material part of subject matter:

A contract in which a material part of the subject matter, supposed by both parties to exist, has, before it has been made, ceased to exist.

XI. Contract to refer to arbitration:

No contract to refer to arbitration shall be specifically enforced.

7. Defenses of defendant:

Meaning:

It means a denial by the defendant of the truth or validity of the plaintiff's claim. so, it is a denial of the plaintiff's claim.

 (i) Absence of writing or part performance:

The plaintiff has not performed the whole of his part of the contract and that part left unperformed forms a considerable portion of the whole which does not admit for compensation in money.

(ii) Compensation in money is adequate relief:

The defendant may set up a defense that compensation in money would be an adequate relief to the plaintiff.

(iii) Uncertain terms:

The terms of the contract cannot be fined with certainty. so, the want of certainty is a ground for resisting the specifics of the contract.

(iv) Absence of consideration:

Contract without consideration is a good ground for the defendant. 

(v) Great hardship:

The performance of the contract would involve hardship on the defendant.

(vi) Defective title:

The plaintiff cannot make good title to the property by the contract.

(vii) Misrepresentation:

The assent of the defendant was obtained under misrepresentation.

(viii) Mistake of fact:

The assent of the defendant was given under mistake of fact.

(ix) Inadequate consideration:

The consideration paid by the plaintiff is grossly inadequate as to the amount of fraud or undue advantage taken by the plaintiff.

(x) Contract made by the company more than its powers:

The contract made by the company more than its powers is a defense for the defendant. 

(xi) Unfair advantage to the plaintiff:

The contract when made gave the plaintiff an unfair advantage to the plaintiff.

(xii) Laps of time:

A suit for specific performance must be filed within three years if is filed after a prescribed period it will be a defense for the defendant.

8. Conclusion:

To conclude I can say that, the specific performance of the contract is its actual execution. the remedy of specific performance is discretionary. the court will not allow the specific performance when compensation in money is a sufficient remedy. under Sec. 21 of the specific relief act contract same be specifically enforced. the defense against the performance of the contract.

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Ikyan Shah (Advocate High Court)
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