May 17, 2024
The concept of Specific Performance refers to a legal remedy provided by the Indian courts under the Special Relief Act, 1963. It essentially compels a party to a contract to fulfill their obligations exactly as agreed upon, rather than awarding monetary compensation for breach of contract.
Circumstances for Granting Specific Performance:
The court will generally grant specific performance of a contract under certain conditions:
Adequacy of Damages: Monetary compensation (damages) wouldn’t be an adequate remedy for the breach. This is often the case for unique items like rare artwork or ancestral property, where money cannot replace the specific item.
Nature of Contract: The contract should be for something specific and identifiable. For example, a contract to deliver a specific car or a painting is more likely to be granted specific performance than a contract for general services.
Enforceability of Contract: The contract must be valid and enforceable in the first place. If the contract is illegal or has some fundamental flaw, specific performance won’t be granted.
Mutuality of Contract: Both parties must have obligations under the contract. A one-sided agreement wouldn’t be eligible for specific performance.
Clean Hands Doctrine: The party seeking specific performance must have acted fairly and legally throughout the entire process. If their conduct has been questionable, the court may be reluctant to grant this remedy.
Discretion of the Court: Ultimately, the decision to grant specific performance lies with the court’s discretion. They will consider all aspects of the case and decide if it’s the most appropriate remedy in the given situation.
Key Points:
When Specific Performance Won’t Be Granted:
There are situations where specific performance might not be granted, even if the conditions above are met. Here are some examples:
Important sections and case law:
Important Sections:
Understanding the concept of specific performance and the circumstances under which it’s granted is crucial for individuals and businesses entering into contracts in India.
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