| Powered by. The courtâs jurisdiction can only be attracted if the breach in a real estate contract is such that it cannot be compensated by money. Under it the plaintiff claims for the specific thing of which he is entitled as per the terms of contract. reiterated that when a plaintiff wants to implead certain persons as defendants in a suit for specific performance on the ground that they may be adversely affected by the outcome of the suit, then interest of justice also requires allowing such a prayer for impleadment so that the persons likely to be affected are aware of the proceedings and may take appropriate defence as suited to their vendors. It depends on courtâs complete discretion which should not be arbitrary but based on sound and reasonable ground. (See Here), IN 2018, the Supreme Court in Sucha Singh Sodhi v. Baldev Raj Walia (Civil Appeal No. Performance of the contract involving some hardship on the Defendant which he did not foresee while non-performance involving no such hardship on the Plaintiff, is one of the circumstances in which the court may properly exercise discretion not to decree specific performance. Specific performance is an action to compel a party who breached a contract to perform the contract as promised. The fourth element of a contract is its objective. SPECIFIC PERFORMANCE UNDER CONTRACT 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. However, in cases where damages would be an adequate standalone remedy, the court will not make an order for specific performance. Specific performance of a contract. similar when the causes of action to sue are separate; when the necessary constituents to the respective causes of action for both the reliefs/claims are different; when both the reliefs/claims are governed by separate sections of the Limitation Act; Another issue arose whether, in absence of permission granted by the trial court at the time of withdrawing the previous suit in which permanent injunction was claimed, the plaintiff can file a fresh suit where specific performance will be claimed. The interest must be such that compensation in terms of money for non-performance of the contract is not an adequate relief; Defendant has the possession of the land in which the building is to be constructed or other work is to be executed. Specific Performance. Specific performance of a contract is a remedy which is ordered by the court on case to case basis. Author: Robin Soni âSpecific Performanceâ an order of the court, which is an alternative of monetary compensation awarded in case of breach of contract by any party i.e when one party fails to fulfil terms of the contract, another party can ask the court to direct the party for performing his contractual obligations instead of awarding damages. According to Section 10 of Specific Relief Act 1963 in the following conditions specific performance of the contract is enforceable: ⦠(See, Specific Performance v Liquidated Damages (See. Specific performance means enforcement of exact terms of the contract. 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. Section 15 of the Specific Relief Act, 1963 provides for those persons who can obtain specific performance of a contract. In the Airport Industrial case, the leaseholder of the site in question was obliged to build a car park, providing 280 car parking spaces for use by the claimants and the tenant of the site. For example, if A agrees to sell certain shares to B of a specific company which are limited in number and after the payment made by B, if A refuses to sell the shares then B is entitled to recovery of those shares. v. the State of Andhra Pradesh. No need to plead readiness and willingness to perform contractual obligations. 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. A party to a contract who is aggrieved because the contract is breached by another party has the option to file a suit for specific performance compelling to perform his part of contract. How To Draft An Outsourcing Agreement To Suit Your Business. Before an equity court will compel specific performance, however, the contract Representative in interest or principal of any party; If a contract is a settlement of marriage or a compromise of doubtful rights between members of the same family, any beneficiary entitled thereunder; If a tenant enters into a contract for life in due exercise of a power, the remainderman; A reversioner in possession, if an agreement is a covenant entered into with his predecessor in title and the reversioner is entitled to the benefit of such covenant; A reversioner in remainder, if an agreement is a covenant and the reversioner is entitled to the benefit and will sustain material injury if there is a breach of contract; If a company has entered into an amalgamation with another company through a contract, the new company which arises out of such amalgamation; If the promoters of a company entered into a contract before its incorporation for purposes of the company and such contract is warranted by the terms of the incorporation, the company provided that the company accepted the contract and communicated such acceptance to the other party of the contract. The cause of action to claim temporary/permanent injunction against the defendants from interfering in plaintiffâs possession over the suit premises accrues when defendant No.1 threatens the plaintiff to dispossess him from the suit premises or otherwise cause injury to the plaintiff in relation to the suit premises. A party affected by the breach of contract has a choice to get the contract performed by an outsider, or by its own particular organization, at the cost of the contracting default party. Are there circumstances where specific performance is not available as a remedy? Contract is the precondition for specific performance of contract, if there is no contract whether expressed or implied there will be no specific performance. AGAINST WHOM CAN SPECIFIC PERFORMANCE BE ENFORCED? â is introduced. The existence of a valid and enforceable contract â If the contract is invalid or unenforceable for some reason, specific performance will not be available as a remedy. The defendant leaseholder was also, effectively, granted an additional two years to complete the building works. Call 0800 689 1700 to speak to us, or book your consultation here and we’ll get in touch. (See Here), Lok Sabha has passed a draft bill amending Specific Relief Act, 1963 known as Specific Relief (Amendment) Bill, 2017.  3777 of 2018) held that specific performance and permanent/temporary injunction cannot be claimed in one suit. What if they don’t meet their first deadline? This was held for the following reasons:-. Specific performance Order of the court directing a party to perform the contract specifically according to the terms of contract. Specific performance means fulfilling a promise made under a contract as agreed. In some building contracts, parties foresee a breach and point out the amount of damages that is to be paid for such breach. Where damages are sufficient: A court will only make an order for specific performance in circumstances where an award of damages would be insufficient. 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. 31087 of 2014]. For a liquidated damage clause to be enforceable, an amount must be set forth having a relationship with the actual damages as estimated by the parties otherwise the court will treat the amount as a penalty for failure to perform the contract. When there is no standard for ascertaining the actual damages for non-performance of an obligation given in the contract; Non-performance of an obligation of a contract cannot be compensated with money. It is a remedy available for breach of contract, although relief can be sought before any breach of contract has occurred. (See, One of the reasons the court orders specific performance is because in some contracts damages cannot be remedied by money or where the true amount of damages is not clear. Specific performance is a very complex area of law, and there are many circumstances which prevent the court from making such an order, including: 1. '4 The natural question, then, is why specific performance is not routinely available. Anandibai Rama @ Rajaram Pawar & Ors. Legal action brought into a court compelling a party to carry out the terms of a contract. Consideration means that the other party would want something in exchange for doing something or abstaining from doing something at the promisorâs desire. 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. This field is for validation purposes and should be left unchanged. Terms of Service apply. You’ve just signed a commercial contract that will partner your business with a new supplier, helping you to scale your offering, meet your forecasted targets and even potentially meet your stretch targets. 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. Such activities are in the sectors of transportation, energy, water & sanitation, communication and social & commercial infrastructure. The court also observed that the necessary parties in a suit for specific performance of a contract for sale are not only parties to the contract or their legal representatives, but also a person who had purchased the contracted property from the vendor. The court may in some cases order specific performance in the form of replevin. What is Specific Performance as âlegal remedyâ? Or their second? The Victorian Supreme Court has recently refused to grant an interlocutory injunction that would have had the effect of requiring specific performance of a contract. 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. In addition to giving persuasive reasons for doing so, the decision in Hera Project Pty Ltd v Bisognin & Anor [2016] VSC 591 more The idea behind it is that any order in this regard is meant to compel a party to perform their positive contractual obligations, i.e. This element specifies that all parties to the contract have to perform all their obligations. However, as time passed by, the leaseholder had not started the work and it became increasingly obvious that there would not be sufficient time for the car park to be completed by the required date. As mentioned above, the court enjoys a broad discretion as to whether to award an order for specific performance. Specific performance is a decree by the court to compel a party to perform his or her contractual obligations. If a legal remedy will put the injured party in the position he or she would have enjoyed had the contract been ⦠(See Here). Is applying for an order for specific performance right for my situation? But we can arrange face-to-face meeting at our offices or a location of your choosing. The difference between the benefits the order would give to one party and the cost of performance to the other (a balancing exercise). Specific performance of a contract. On the other hand, the cause of action to file a suit for claiming specific performance arises from the date fixed for the performance or when the plaintiff has noticed the non-performance of the defendant. Whether the defendant has suffered hardship since entering into the contract, whether or not that hardship was caused by you as the claimant or is related to the subject matter of the contract. Specific performance and temporary/permanent injunction cannot be claimed in one suit as they are independent of each other. 31087 of 2014] reiterated that when a plaintiff wants to implead certain persons as defendants in a suit for specific performance on the ground that they may be adversely affected by the outcome of the suit, then interest of justice also requires allowing such a prayer for impleadment so that the persons likely to be affected are aware of the proceedings and may take appropriate defence as suited to their vendors. then it is impossible to claim both the reliefs together on one cause of action in the same suit. (See, In 2017, the Kerala High Court held that a plaintiff is entitled to specific performance of a contract only if he sticks to the original terms of the contract. The subject matter of the contract in question is unique, that there is no market substitute, or. [SLP (C) No. 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. A suit for specific performance can be filed by any party, in a court of competent jurisdiction, who has suffered loss due to non-performance of contract on part of the other party to the contract. The purpose for which a contract is entered into must be legal otherwise the contract would be void. As a general rule, specific performance is applied in breach of contract actions where monetary damages are inadequate, primarily where the contract involves land or a unique chattel (Personal Property).