Contracts which may be enforced specifically

Contracts which may be enforced specifically

Contracts which may 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's 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. 12 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. Nature of specific performance:

Specific performance is discretionary remedy. it will not be allowed when the damages by breach can be compensated with money.

6. Essentials of enforceable contract:

There should be a contract.

There should be nothing against the enforcement of such a contract. 

The act to be done is in the performance of a trust, or if no standard exists for ascertaining the actual damage.

When the pecuniary compensation would not afford adequate relief itself.

When it is probable the pecuniary compensation cannot be enough for the nonperformance of the act agreed to be done.

The court deems it fit to exercise its discretionary power.

7. Cases in which specific performance is enforceable:

Specific performance of a contract may be enforced in the following cases:

I. Contracts in performance of trust:

When the act agreed to be done in the performance wholly or partially of a trust.

Illustration:

A holds certain stocks in trust for B. A wrongfully disposes of the stock. A is under an obligation to restore the same quantity of stock to B. B may enforce specific performance of the contract. 

II. No standard for ascertaining damage:

When there exists no standard for ascertaining the actual damage caused by the non-performance of the act agreed to be done. 

Illustration:

A agrees to buy and B agrees to sell a picture by a dead painter. A may compel B for specific performance of the contract, as there is no standard for ascertaining the actual damage that would be caused by its non-performance.

III. Pecuniary compensation not adequate relief:

When the act agreed to be done is such that pecuniary compensation for its non-performance would not afford adequate relief.

Illustration:

A contract with B to paint a picture for B, who agrees to pay therefore Rs. 2000. The picture is painted, and B is entitled to have it delivered to him on payment or tender of Rs. 2000.

IV. Pecuniary compensation cannot be got:

When pecuniary compensation cannot be got for the non-performance the act agreed to be done. 

Illustration:

A trustee without endorsement, but for valuable consideration, a promissory note to B. A becomes insolvent, and C is appointed his assignee. B may compel C to endorse the note, For C has succeeded to A's liabilities, and a decree for pecuniary compensation for not endorsing the note would be fruitless.

V. Partial Performance

Under Sec 14, if a part of a contract that is smaller, is left unperformed, the court may at the suit of either party direct the specific performance of so much of the contract as can be performed, and award compensation in money for the deficiency. 

VI. Where part unperformed is Larger

According to Sec 15 the party not in default is entitled to file a suit for the specific performance of a larger part of the contract, as much as he can.

VII. Where Part is Independent

Where one part of the contract is severable because it stands on separable and independent footings to the other and the performance of one part is either impossible or undesirable. 

8. Conclusion:

To conclude I can say that the specific performance of the contract is an equitable remedy. specific performance of the contract may be enforced by the court by exercising its discretionary power. the doctrine of specific performance of the contract is based upon the principles of equity because the plaintiff is entitled to have the specific thing for which he has the contract.

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Ikyan Shah (Advocate High Court)
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