SPECIFIC RELIEF ACT
CONTRACTS WHICH ARE SPECIFICALLY
INTRODUCTION
Section 12 of the Specific Relief Act, 1877, outlines the conditions under which
a contract can be specifically enforced. This remedy is discretionary and is
granted when monetary compensation is inadequate or impractical. Section 21
of the Specific Relief Act, 1877, outlines the categories of contracts that courts
will not enforce through specific performance.
RELEVANT PROVISION
• Section 12 of SRA – Contracts which may be specifically enforced
• Section 21 of SRA – Contracts that cannot be specifically enforced.
CONTRACTS WHICH MAY BE SPECIFICALLY ENFORCED
CONTRACTS FOR THE PERFORMANCE OF A TRUST
When a contract involves the execution of a trust, specific performance is
generally enforceable. Since trustees have a fiduciary duty to act in the best
interest of beneficiaries, courts ensure that such obligations are fulfilled.
• Example: A trustee is required to transfer a property to its rightful
beneficiary. If the trustee refuses, the court can enforce specific
performance to ensure compliance with the trust agreement.
WHEN MONETARY COMPENSATION IS INADEQUATE
If the subject matter of the contract is unique or has special value, monetary
damages may not be a suitable remedy, and the court may order specific
performance.
• Example: A contracts to sell an antique painting to B. Since the painting is
one of a kind, financial compensation cannot fully compensate B for its
loss. The court may enforce specific performance, compelling A to
transfer the painting to B.
WHEN IT IS DIFFICULT TO ASSESS DAMAGES
In some cases, the loss resulting from non-performance of a contract cannot be
precisely measured. If damages are speculative or incalculable, specific
performance may be granted.
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SPECIFIC RELIEF ACT
• Example: A contracts to sell B shares in a private company that are not
available in the open market. Since the market value of such shares
cannot be easily determined, the court may enforce specific performance.
WHEN MONETARY COMPENSATION IS UNRECOVERABLE
If there is no guarantee that the plaintiff can recover monetary damages from
the defendant, the court may grant specific performance.
• Example: A contracts to build a custom-designed house for B. If A refuses
to complete the construction and has no financial means to pay
compensation, the court may order specific performance to ensure the
contract is fulfilled.
PRESUMPTION REGARDING IMMOVABLE AND MOVABLE PROPERTY
The law presumes that contracts involving immovable property (e.g., land,
houses) require specific performance, as land has unique characteristics and
cannot be easily replaced. In contrast, contracts for movable property (e.g.,
goods, vehicles) are usually compensable with money, unless they involve rare
or unique items.
• Real Estate Contracts
• Art and Collectibles
• Business Shares
• Specialized Services
CONTRACTS THAT ARE NOT SPECIFICALLY ENFORCEABLE
CONTRACTS WHERE MONETARY COMPENSATION IS SUFFICIENT
If monetary damages can fully compensate the loss resulting from a breach, the
court will not order specific performance. This applies when the contract
involves generic goods or services that can be substituted.
Example: A contracts to sell 100 bags of rice to B. If A refuses to deliver, B can
easily purchase rice from another source. The court will award monetary
damages instead of enforcing specific performance.
CONTRACTS REQUIRING PERSONAL SKILL, QUALIFICATION, OR VOLITION
Contracts that depend on personal abilities, expertise, or free will cannot be
specifically enforced because forcing a person to perform violates principles of
personal freedom.
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• Example: A contracts with B, a famous artist, to paint a portrait. The court
will not enforce this contract because it relies on personal skill. A singer
contracts to perform at a concert but later refuses. The court will not force
them to perform but may grant monetary compensation.
CONTRACTS WITH UNCERTAIN OR VAGUE TERMS
A contract that lacks clear and definite terms cannot be enforced because the
court cannot determine what exactly needs to be performed.
• Example: A agrees to sell B “a beautiful house” without specifying the
location, size, or price. Since the contract is too vague, the court will not
enforce it.
CONTRACTS THAT ARE REVOCABLE
Contracts that can be legally revoked by one party cannot be specifically
enforced because the other party has the right to terminate the agreement.
• Example: A and B enter into a partnership agreement without specifying
the duration. Since partnerships can be dissolved at any time, the court
will not enforce the agreement.
CONTRACTS BEYOND THE LEGAL POWERS OF TRUSTEES OR CORPORATIONS
A trustee or corporation can only enter into contracts within their legal
authority. If they exceed their powers, the contract cannot be enforced.
• Example: A trustee agrees to sell trust property without proper
authorization. The contract is unenforceable because the trustee lacks
legal power.
• A railway company, meant for transport services, contracts to build a
shopping mall. Since this exceeds the company’s legal authority, the
contract cannot be specifically enforced.
CONTRACTS REQUIRING CONTINUOUS PERFORMANCE FOR MORE THAN
THREE YEARS
If a contract requires continuous obligations extending over a long period, it
cannot be specifically enforced because it would be impractical for courts to
supervise its performance.
• Example: A agrees to supply B with fresh vegetables every day for five
years. Since continuous supervision would be required, the court will not
enforce the contract.
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CONTRACTS WHERE THE SUBJECT MATTER CEASED TO EXIST BEFORE
EXECUTION
If the subject matter of a contract no longer exists, specific performance
becomes impossible.
Example: A agrees to sell B a specific painting by a famous artist. Before the
contract is executed, the painting is destroyed in a fire. Since the item no longer
exists, the contract cannot be enforced.
CONCLUSION
Section 12 of the Specific Relief Act, 1877, ensures that contracts involving
unique and irreplaceable obligations are enforced through specific performance
when monetary compensation is inadequate. Section 21 of the Specific Relief
Act, 1877, ensures that only practical, fair, and legally sound contracts are
enforced. It prevents courts from enforcing vague, unfair, or impossible
contracts while allowing monetary compensation where necessary.
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