Q. Elucidate the contracts which can be specifically enforced and which cannot be specifically enforced.
Meaning of Specific Performance
Specific performance is an equitable remedy granted by the court whereby a party is compelled to perform the actual promise made in the contract instead of merely paying damages.
In simple words,
When compensation is not enough, the court orders the party to do exactly what was agreed in the contract.
The law relating to specific performance is governed by the Specific Relief Act, 1963.
Normally, damages are the rule and specific performance is the exception. It is granted when monetary compensation is inadequate.
When is Specific Performance Granted?
Specific performance is granted when:
• The actual performance is more important than money.
• The subject matter is unique.
• Damages cannot properly compensate the injured party.
Example:
If Ravi agrees to sell his land to Suresh and later refuses, Suresh can seek specific performance because land is unique and money is not a proper substitute.
Contracts Which Can Be Specifically Enforced
The following contracts can be specifically enforced:
1) Contract for Sale of Immovable Property
Contracts relating to land, buildings, houses, etc., can be specifically enforced because such property is unique.
Example:
Ravi agrees to sell his house to Suresh for ₹50 lakhs. Later Ravi refuses. Suresh can file a suit for specific performance and compel Ravi to transfer the house.
2) Contract Where Compensation is Not Adequate
If damages are not sufficient to remedy the loss, specific performance is allowed.
Example:
Ravi agrees to sell a rare painting to Suresh. Since the painting is unique, money is not enough. So, the court may order Ravi to deliver the painting.
3) Contract to Execute a Trust
Contracts relating to execution of trusts can be specifically enforced.
Example:
Ravi agrees to transfer property to a trustee for charity. If Ravi refuses, the court can compel performance.
4) Contract to Transfer Unique Goods
When goods are special and cannot be easily replaced, specific performance is granted.
Example:
Ravi agrees to sell an antique watch to Suresh. Since the watch is unique, the court may order actual delivery.
5) Contract Where Act is Clearly Determinable
If the act to be performed is certain and not vague, specific performance may be enforced.
Example:
Ravi agrees to construct a wall of specified height and design. If he refuses, the court may compel performance.
Contracts Which Cannot Be Specifically Enforced
Certain contracts are not suitable for specific performance. The court will only grant damages instead:
1) Contracts Where Compensation is Adequate
If money can properly compensate the loss, specific performance is not granted.
Example:
Ravi agrees to sell 100 bags of rice to Suresh. Rice is available in the market. So, damages are sufficient, and specific performance will not be ordered.
2) Contracts Involving Personal Skill or Personal Service
Contracts depending on personal talent, qualifications, or confidence cannot be enforced.
Example:
Ravi agrees to sing at Suresh’s event. He later refuses. The court cannot force Ravi to sing. Only damages can be claimed.
3) Contracts Which Are Determinable in Nature
If a contract can be terminated at any time by either party, it cannot be specifically enforced.
Example:
An employment contract terminable by notice cannot be forced to continue.
4) Contracts Requiring Continuous Supervision
If performance requires constant monitoring by the court, specific performance is not granted.
Example:
Ravi agrees to manage Suresh’s business for five years. The court cannot supervise daily business activities. So, specific performance is refused.
5) Contracts Which Are Uncertain
If the terms of the contract are vague or unclear, they cannot be specifically enforced.
Example:
Ravi agrees to sell “some property” to Suresh. Since the subject is uncertain, the court cannot enforce it.
6) Contracts Dependent on Personal Volition
Where performance depends purely on personal will, specific performance is not possible.
Example:
Ravi agrees to write a book for Suresh. The court cannot force creativity.
Difference Between Enforceable and Non-Enforceable Contracts (Short View)
Contracts enforceable by specific performance:
• Involve unique subject matter.
• Damages are inadequate.
• Acts are definite.
Contracts not enforceable by specific performance:
• Money compensation is enough.
• Depend on personal skill.
• Require continuous supervision.
• Are uncertain or determinable.
Conclusion (For Scoring)
To conclude, specific performance is an equitable remedy granted when damages are not adequate. Contracts relating to immovable property, unique goods, trusts, and clearly determinable acts can be specifically enforced. However, contracts involving personal skill, continuous supervision, determinable nature, uncertainty, or where compensation is sufficient cannot be specifically enforced. The courts apply this remedy carefully to ensure fairness and justice between parties.
One-Line Exam Memory Tip
Specific performance compels actual performance of a contract and is granted only when damages are inadequate and the subject matter is unique or irreplaceable.