Specific Performance in Contracts

When the goods are truly unique or irreplaceable, for instance, the court may order specific performance. However, to get it done, the contract must also be legal, which essentially implies that it cannot be a contract to buy, sell, or engage in illicit activity. To engage into a contract, both parties must be of legal age and capacity. This means that they have to be of legal age and free from any impairments or disabilities.

What Does Specific Performance Mean?

Specific performance or equitable relief is the remedial right in the law that one party can claim when pray when other contracting party violates the terms of the contractual agreement. In other words, specific performance of contracts refers to the right of an aggrieved party (who suffered damage or injury because of breach of other party) to obtain a court-ordered in regard to performance of the contract, as opposed to an award of monetary damages. The aggrieved party requests to court for specific performance, especially when monetary damages are insufficient.

In India, there is a specialized law to that deal with such issues, namely “the Specific Relief Act of 1963.” It governs the specific performance of contracts. The act discusses two types of specific performance −

• Mandatory Injunction and

• Discretionary

Section 39 of Specific Relief Act states that

“When, to prevent the breach of an obligation, it is necessary to compel the performance of certain acts which the court is capable of enforcing, the court may in its discretion grant an injunction to prevent the breach complained of, and also to compel performance of the requisite acts.”

In other words, mandatory injunction is an order given by the court when the contract is such that its terms cannot be replaced by an award of damages. For example, contracts for the sale of some specified goods or property, such as a piece of painting or a particular land, may be ordered to be specifically performed.

Secondly, discretionary specific performance is an order that depends on the discretion of the court. This type of specific performance may be ordered if the contract is one that is capable of being performed, and if an award of damages would not be an adequate remedy for the breach. In Ranganatha Gounder Vs. Sahadeva Gounder and Others, the Madras High Court held that, jurisdiction to decree specific performance is discretionary and the court is not bound to grant such relief merely because it is lawful to do so.

Moment and Location of Performance

The timing and location of a contract's performance are determined by its parties. Sections 46 to 50 of the Contract Act include the regulations governing the time and location of performance. These are listed below −

Promise fulfillment upon request from the Promisee

It is also possible that the contract specifies the day on which the promise is to be fulfilled, but the promisor has not agreed to do so absent a request or demand from the Promisee. In these situations, the promisee must request performance at the appropriate location and during regular business hours.

Performance of a promise where neither a location nor a request by the promisee is specified

It is the obligation of the promisor to apply for or ask the promisee to set a reasonable place for performance when a promise is to be carried out without the promisee's application or demand and no location is indicated.

Analysis of the Specific Contracts

The law will continue to stipulate and presumptively hold that performance under a contract involving moveables may be refused in order to recover damages. The transportable property will be an exception to this rule, among other things, if it is not a common commercial item, has special worth or significance to the plaintiff, or is made up of difficult-to-find products. A contract is an agreement for a sufficient consideration to perform or refrain from performing a specific act. This contractual obligation must be fulfilled by the party who is responsible for it. If he doesn't, the opposing party will be able to sue for contract performance. The term "Specific Performance" refers to this.

When damages are insufficient as a remedy or in certain circumstances, such as the sale of real estate, a specific performance order is obtained. As with all equitable remedies, the availability of such orders depends on whether they are suitable in the particular circumstances of the case. In accordance with the law as it stands, judges award particular performance where they believe the damages will not be sufficient reparation. An unusual remedy that the court may grant is specific performance.

Further, the accomplishment of the expectations set by a contract that was entered into voluntarily by the parties is one of the key components of civil rights. Contracts are not merely one-off deals. It frequently serves as one link among many contracts. A severe disruption of economic and social life can result from a single failure. The agreement must be upheld. A contract can only be enforced by the law of contracts if the aggrieved party receives compensation or if the contract's duties are expressly enforced.

To perform the contract is the most natural method to end it. The performance could either be real or just an attempt (also known as Tender). The contract is discharged when one party offers to fulfill his commitment in line with the terms of the agreement and the other party rejects it. The unconditional tender must be presented to the promisee or his designated agent at the appropriate time, place, and manner, and it must be for the entire obligation in order to be considered legal.

The promisee alone has the authority to demand performance. In the event of his death, his heirs may demand performance. Personal contracts must be fulfilled by the promisor in these cases. In other circumstances, his agent could carry it out, and in the event of his passing, his legal representatives could.

If two or more people make a joint promise, all of them must carry it out jointly unless the contract expressly states otherwise. When one of the joint promisors passes away, the remaining joint promisors are also obligated to fulfill their obligations.

Conclusion

Governed under the Specific Relief Act, the specific performance of contracts is a remedial right of one party (who suffered loss or injury) against the other party (who is guilty). However, the plaintiff who is seeking this remedy essentially needs to convince the court that the normal remedy (usually monetary damages) is inadequate. In some cases, such as in cases of contracts for the transfer of immovable property, damages will not be adequate; so specific performance provisions need to be applied.

FAQs

Q1. What does contract law mean by contract performance?

Ans. Contracts must be complied with contracting parties' obligations, unless the performance is waived or excused under the terms of this Act or another law, the parties to a contract must either fulfill or propose to perform their respective promises.

Q2. In India, what is particular execution of a contract?

Ans. A fair remedy is monetary damages and also the specific performance. Since it is assumed that in situations involving contracts for the transfer of immovable property, only damages will not be adequate, the plaintiff seeking this remedy must first convince the court that the standard remedy of damages is insufficient.