The action is usually one that has been previously detailed in a contract. Critically discuss specific performance of contracts. A specific performance example is when a party defaults on its contractual obligation and is ordered by the court to fulfill said obligations. Contract management is the process of managing contract creation, execution, and analysis to maximize operational and financial performance at an. But it is granted as an exception, in cases where compensation either is not ascertainable or is inadequate, and where it is possible of effective enforcement.
Remedies for breach of contract 27 i the parties, while forming the contract, may have made an assessment of the likely loss that the aggrieved party would actually suffer in the even of breach. The term specific performance refers to literal performance of ones obligations under a contract. This act may be called the specific relief act, 1877. As there is no particular format provided for the contract, it does not have to be formal.
What is the difference between specific performance. In case of his failure, the other party will have a right sue for performance of the contract. When this has been accomplished, the parties are discharged automatically and the contract is discharged eventually. In indian law, specific relief giving enforced performance of a contract is by way of a decree of specific performance, or injunction prohibitory or mandatory. Specific performance order of the court directing a party to perform the contract specifically according to the terms of contract. If a legal remedy will put the injured party in the position he or she would have enjoyed had the contract been fully performed, then the court will use that option instead. Sections 925 deal with specific performance of contracts. Exceptional nature of specific performance in the indian.
In this article, yash kansal discusses enforceability of specific performance of contract. Suit for specific performance of agreement to sell civil case no. Hi fellow law students, i am sharing pdf notes, book and ebook for the subject contract law for llb and ba. Should a party default on his obligation, a court may issue an order for specific performance, requiring a party to perform a particular action. Court refuses to grant specific performance of employment. A specific performance of contract would not be enforced by issuing a writ of or in the nature of mandamus, particularly when keeping in view the provisions of the specific relief act, 1963 damages may be an adequate remedy for breach of contract. Performance should be complete, precise and according to the terms of the agreement. This paper is to impart knowledge various special contract, law of agency and partnership and specific reliefs. However, instead of agreeing to a contract on what you have to purchase, youre agreeing to a contract on how well you should do. In india, the contract has to be in writing in order to attract the rule of part performance. Specific performance, very simply, is a court order that mandates everyone comply with the language of the written contract.
Specific performance of contract and its enforceability. In case of his failure, the other party will have a right sue for performance of the. Olin center for law, economics, and business specific performance versus damages for breach of contract steven shavell discussion paper no. Order of specific performance is granted by the courts when the damages are not an adequate remedy, and in some specific cases, such as sale transfer of land. Introduction the law of specific relief in india was originally codified by specific relief act, 1877. Aug 25, 2017 while specific performance can be in the form of any type of forced action, it is usually to complete a previously established transaction, thus being the most effective remedy in protecting the. The situation in indian law is different from common law. Specific performance can refer to any kind of forced action, though it is usually enforced so as to complete a transaction that had been previously agreed to. Legal action brought into a court compelling a party to carry out the terms of a contract. In excess of powers or in breach of trust cannot be specifically enforced. Think of these forms as similar to purchase contract forms. Specific performance is an equitable remedy that can be awarded for breach of contract, requiring the party to perform their obligations under the contract.
The term performance of contract means that both, the promisor, and the promisee have fulfilled their respective obligations, which the contract placed upon them. Cases in which specific performance of contracts connected with trust enforceable. Section 9 of the specific relief act provides that a person against whom the. Dawson, who has called for the specific performance of all contracts to deliver. Specific performance of contract based on ratio decidendi 1 ready and willing to perform and conduct of a plaintiff in a suit for specific performance. Specific performance of contracts legal service india. An injunction can be temporary, preliminary or permanent. Ordinarily, when there is a breach of contract, the damages one usually claims is money. In the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this agreement, the party who is or is to be thereby aggrieved shall have the right to specific performance and injunctive or other equitable relief of its rights under this agreement, in addition to any and all other rights and remedies at law or in equity. Specific performance of contracts legal services india. Specific performance is an action to compel a party who breached a contract to perform the contract as promised. Actions for specific performance are usually allowed with regard to a contract involving the sale of particular real estate.
The parties hereto agree that irreparable damage would occur in the event that any of the provisions of this agreement were not performed in accordance with their specific terms or were otherwise breached. If one or more parties in a contract fail to live up to the agreement, the wronged party or parties can ask that the courts issue a mandate requiring those in breach to comply with the terms of the agreement. Section 11 cases in which specific performance of contracts connected with trusts enforceable s112 provides contracts made by trustees. Specific performance is a remedy based in contract law.
Specific performance is a discretionary order made by a court wherein a party to a contract must perform a specific action as outlined in an existent contract. As a general rule, specific performance is applied in breach of contract actions where monetary damages are inadequate, primarily. While specific performance can be in the form of any type of forced action, it is usually to complete a previously established transaction, thus being the most effective remedy in protecting the. For instance, a visits a stationery shop to buy a calculator. Specific relief act, 1963 bare act, bare act pdf, law notes. Feb 12, 20 specific performance order of the court directing a party to perform the contract specifically according to the terms of contract.
As there is no particular format provided for the contract, it. Section 10 of specific relief act updated cases in which specific performance of contract enforceable. This is done by giving the promisee the aggrieved party, a right to have the breached contract performed through a third party or by his. Parties to a contract must perform their contractual obligations otherwise they can be sued for nonperformance. The shopkeeper delivers the calculator and a pays the price. A to complete the contract according to the terms and conditions, then it is specific performance of contract and primary right of mr. Specific performance is a specialized remedy used by courts when no other remedy such as money will adequately compensate the other party. Law on specific performance of contract articles on law. Sections 27 to 30 of specific relief act4 deals with rescission of contract. Specific performance is an equitable remedy in the law of contract, whereby a court issues an order requiring a party to perform a specific act, such as to. Notice by purchaser for specific performance of an agreement. This article argues that the remedy of specific performance should be as routinely available as the damages remedy.
Specific performance can be granted only by a court in the exercise of its equity powers, subsequent to a determination of whether a valid contract that can be enforced exists and an evaluation of the relief sought. Most of the contracts are discharged by performance in this manner. Cases in which specific performance of contract enforceable. I shall file a suit against you for specific performance of the said agreement for. Apr 01, 20 in indian law, specific relief giving enforced performance of a contract is by way of a decree of specific performance, or injunction prohibitory or mandatory. Lectures of specific relief act pahuja law academy. Moreover, courts seldom enforce contract clauses that explicitly provide for specific performance in the event of breach. It is typically available in the sale of land law, but otherwise is not generally available if damages are an appropriate alternative. Specific performance is equitable relief, given by the court to enforce against a defendant, the duty of doing what he agreed by contract to do. Oct 22, 20 a contract is an agreement upon sufficient consideration to do or not to do a particular act.
An injunction is a remedy that prohibits a party from a particular act. The party on whom this contractual obligation rests must not fails to discharge such obligation. Understanding substituted performance under the specific. Decree of specific performance is discretionary relief. Amount predetermined as total compensation by the parties to an agreement which an injured party should get if other party breaches a part of the contract. Specific performance of contracts free download as word doc. This paper refers to a breach of contract which means failure to keep the promises or agreements of a contract and as a result of that breach, the one party suffers damage. Specific relief to be granted only for enforcing individual civil rights and not for enforcing penal laws. Specific performance of a part of the contract part performance sec 12 general rule. The preestimate of damages would be called a stipulation by way of liquidated damages. A contract should be performed at the time specified and at the place agreed upon.
Specific relief to be granted only for enforcing individual civil rights and not for. The defendant may set up any one of the following defences in a suit for specific performance of contract. Specific performance legal definition of specific performance. Pdf contract law notes, ebook free download for llb students. Exceptional nature of specific performance in the indian law. Specific performance definition, examples, cases, processes. Specific performance is almost never available for contracts of. Hence, the rule of part performance applies to lease, mortgage, etc. It held that specific performance of employment contracts is only ordered in exceptional cases and this was not an appropriate case. There are two main equitable remedies available for breach of contract.
Conduct post contract can be informative, in showing that the parties thought a contract was made or wasnt, but cant tell us what happened at the time of the agreement could lead to mischief, contract cannot be modified by subsequent actions what kind of remedy might there be for this situation. What is the difference between specific performance and a. First of all, this paper highlights the correlation between breach and. When both the parties perform their promises, the contract is discharged. A contract is an agreement upon sufficient consideration to do or not to do a particular act. I shall file a suit against you for specific performance of the said agreement for sale with damages and costs. Specific relief amendment bill, 2018 introduces a new concept of substituted performance by proposing to amend certain provisions of the specific relief act, 1963. In requiring a contract to be complete, the law is merely saying that any work undertaken must be carried out to the end of the obligations. In expecting exact performance, the courts mean that, performance must match contractual obligations. Mar 05, 20 notice by purchaser for specific performance of an agreement. Specific performance of contracts specific performance breach. Aug 16, 2017 specific performance is a directive ordered by a court wherein a party to a contract must perform a specific action as outlined in an existent contract. Performance of contract meaning types of performance.
Specific performance is an equitable remedy in the law of contract, whereby a court issues an order requiring a party to perform a specific act, such as to complete performance of the contract. The law relating to equity, in india today, is contained in the specific relief act, 1963 act 47 of. Some notes on an enforcement model and a theory of efficient breach. Suit for specific performance of agreement to sell. As a general rule, court compels specific performance of the whole contract. Specific relief act, 1963 bare act with pdf download. The court considered the case of powell v brent london borough council 1988 in which specific performance was, unusually, ordered in respect of an employment contract.
Some notes on an enforcement model and a theory of efficient breach, 77 colum. Specific performance versus damages for breach of contract. Thus, the remedy of specific performance is in contrast with the remedy by way of damages for breach of contract, which gives pecuniary compensation for failure to. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent breaches of this agreement and to enforce specifically the terms. Law on specific performance of contract introductory. What are the defences available to the defendant in suit for specific performance of contract. The subject matter of the contract must be unique, or an action for damages would be the proper remedy. Thus, the remedy of specific performance is in contrast with the remedy by way of damages for breach of contract, which gives pecuniary compensation for failure to carry out the terms of the contract. Specific performance of a contract analysis and case laws. It will be noted that provisions of specific performance are not applicable in case of criminal offences. Specific performance is the most accurate method of achieving the compensation goal of contract remedies because it gives the promisee the precise performance that he purchased. Specific relief is a form of judicial redress belongs to the law of procedure and is a body of written law arranged according to the natural affinities of the subject matter. Specificperformance equity and trust ueq3612 mmu studocu. Defense respecting suits for relief based on contract.
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