Specific Performance of Contract Law

Specific Performance of contract

Section 10 of the Specific Relief Act, 1963

The essence of Specific Performance of contract should be traced to the intention of the parties when they entered into the contract, then there is a common occasion-able foresight that the contract has to be performed and in exceptional cases wherein performance is not possible, damages will be granted to the aggrieved party by the wilful defaulter.

Thus the concept of damages in case of breach does not mean that the party can deliberately commit a breach rather the first objective is the performance of the contract and the concept of damage is only to create a deterrent effect so as to prevent the parties from committing the breach of contract.

The provisions relating to damages are provided in the Indian Contract Act, 1872 but “consensus ad idem” cannot be limited only to claim damages rather on the principle of equity, specific performance of a contract may be the only adequate relief in light of facts and circumstances of the case.

Accordingly, Section 10 of SRA, 1963 on the principle of Equity and Justice between the contracting parties plays a complementary role to the Indian Contract Act, 1872. However, it is a specific relief shall not be awarded as a matter of routine rather only in specific circumstances where equity makes it indispensable and for that purpose, a complete justice-based discretion lies in the hands of the court.

E.g. Banquet Hall

Marriage – On 20th June – on 19th Owner of Banquet hall says, I cannot give it – damages not sufficient – here, Specific performance required i.e. Banquet Hall needed.

Note: – Specific performance is an exceptional relief – not in daily routine to be given.

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