Specific Performance of Contract: A Comprehensive Guide
Specific Performance of Contract
1. Introduction
Specific performance refers to the actual fulfillment of a contract as per its terms. In such cases, the plaintiff seeks the exact thing they contracted for, rather than monetary compensation. However, specific performance is not always available and depends on certain circumstances.
2. Definition
According to Pomeroy, specific performance involves the contracting party’s precise fulfillment of their obligation, either by performing or refraining from the specific act agreed upon in the contract.
3. Legal Basis
The concept of specific performance is primarily governed by Section 12 of the Specific Relief Act.
4. Doctrine of Specific Performance
Specific performance is an equitable remedy that compels the actual execution of a contract according to its terms and conditions. It contrasts with awarding damages or compensation for non-performance.
5. Nature of Specific Performance
Specific performance is a discretionary remedy, meaning courts have the power to decide whether to grant it based on the specific facts of the case. It is typically not granted when monetary damages can adequately compensate the injured party.
Conditions for Specific Performance
For specific performance to be granted, the following conditions generally need to be met:
- A valid contract must exist.
- There should be no legal barriers to enforcing the contract.
- The act to be performed must be related to a trust or involve situations where there’s no clear standard for measuring damages.
- Monetary compensation alone would not provide sufficient relief.
- It is likely that monetary compensation would be inadequate for the non-performance of the agreed-upon act.
- The court deems it appropriate to exercise its discretionary power to grant specific performance.
6. Cases Where Specific Performance is Enforceable
Specific performance may be enforced in the following situations:
I. Contracts Involving Trusts
When the act agreed upon is part of fulfilling a trust, either wholly or partially.
II. Absence of a Standard for Assessing Damages
When there is no established method for determining the actual damages caused by the non-performance of the agreed-upon act.
III. Inadequate Pecuniary Compensation
When monetary compensation would not sufficiently address the harm caused by the non-performance of the act.
IV. Inability to Obtain Pecuniary Compensation
When it is impossible to obtain monetary compensation for the non-performance of the agreed-upon act.
7. Conclusion
Specific performance is a valuable equitable remedy that allows courts to ensure the actual fulfillment of contractual obligations in appropriate cases. Its application depends on various factors, and courts exercise discretion in granting this remedy to ensure fairness and justice.