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Thread: Q. What do you mean by specific performance of contract?

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    Word Icon 35px Jpg.ashx Q. What do you mean by specific performance of contract?

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    Q. What do you mean by specific performance of contract? discuss the contracts which may be enforced specifically. (1999) (2001)
    1. Introduction:

    Specific performance is an 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 can not be specifically enforced.
    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.
    2. Relevant Provisions:
    Sec. 12 of specific relief act.
    3. Doctrine of specific performance of contract:
    The specific performance of a contract is its actual execution according to its stipulation and terms and is contrasted with damages or compensation for no execution of the contract.
    4. Definition of specific performance:
    Pomeroy has defined "specific performance consists in the contracting party's exact fulfillment of the obligation which he has assumed in his doing or omitting the very act which has undertaken to do or omit."
    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.
    Case law
    2005 YLR 1905
    It was held that relief in suit for specific performance is discretionary and can also be granted to a party which has placed material on record to show bona fide on his part to perform contract.
    6. Essentials of enforceable contract:
    (i) There should be a contract.
    (ii) There should be nothing against the enforcement of such contract.
    (iii) The act to be done is in the performance of a trust, or if there exist no standard for ascertaining the actual damage.
    (iv) When the pecuniary compensation would not afford adequate relief itself.
    (v) When it is probable the pecuniary compensation can not be enough for the non performance of the act agreed to be done.
    (vi) The court deems it fit to exercise its discretionary power.
    7. Cases in which specific performance enforceable:
    Specific performance of 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. When no standard for ascertaining damage:
    When there exist 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 which would be caused by its non- performance.
    III. Where 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 contracts with B to paint a picture for B, who agrees to pay therefore Rs. 2000. the picture is painted B is entitled to have it delivered to him on payment or tender of the Rs. 2000.
    IV. Where 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.
    8. Conclusion:
    To conclude I can say that specific performance of the contract is equitable remedy. specific performance of the contract may be enforce by the court by exercising its discretionary power. the doctrine of specific performance of the contract based upon the principles of equity because the plaintiff is entitled to have the specific thing for which he has contract.

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