Q) what contracts can be specifically enforced?

Performance of contract means where both parties are legally bound to fulfil their obligation/duties
created under the contract terms. The parties are bound to fulfil their reciprocal promises in the
contract. When either of the parties does not fulfil its obligations as per the terms of the contract
then the party to whom the breach is so caused shall sue for specific performance of a contract. It is
an equitable relief given by the court in the form of an award for the completion of the performance
of a contract. Basically, the mission of the Specific Act is to assure that whenever there is a wrong
there must be a remedy. It sets out two main remedies to party whose contract has not been
performed. First one, the party may ask court to compel performance of contract (specific
performance) and second one being the party may seek monetary compensation instead of
performance.

Section 10 of the Specific Relief Act 1963 - outlines conditions under which specific performance of a
contract may be enforced at the discretion of the court.

The court may order a specific performance if

There is no standard to calculate the actual damage (a)

Compensation in money for non-performance wouldn’t prove adequate relief (b)

Court presumes that for contracts involving the transfer of immovable property, damages would not
be sufficient unless proven otherwise.

For contracts involving movable property, specific performance can be granted unless certain
exceptions apply. These exceptions include situations where the property is unique, of special value
to the plaintiff, not easily obtainable in the market, or held by the defendant as the plaintiff's agent
or trustee

In the case of Ram Karan v Govind Lal, an agreement was formed for the sale of agricultural land.
The buyer had already paid the entire sale amount to the seller, fulfilling his part of the agreement.
However, the seller, despite receiving the payment, refused to follow through and execute the sale
deed as agreed upon. In this legal dispute, the court determined that merely compensating the
buyer with monetary damages would not be sufficient to provide adequate relief. Instead, the court
decided to enforce specific performance, which means it ordered the seller to fulfill their contractual
obligation by executing the sale deed in favor of the buyer as originally agreed. This ruling ensured
that the buyer would receive the land they had contracted to purchase, as it was deemed the most
appropriate remedy in this case.

Agreement for reconveyance or repurchase:

An agreement to repurchase property that had been sold, popularly known as an agreement for
reconveyance, has been held to be specifically enforceable.

Delay as a defence

Unreasonable delay by a plaintiff in performing their part of the contract can operate as a defence
against obtaining specific relief.

Conditions

Time was the essential element (originally)

time was made an essential element by subsequent choice
Delay was so unreasonable and that led to the abandonment of the contract

Specific performance connected with trust (s. 11 SR Act)

 Specific performance can be enforced when the act agreed upon is in performance, wholly
or partly, of a trust.

 However, contracts made by a trustee in excess of their powers or in breach of trust cannot
be specifically enforced.

Specific Performance of Part of a Contract (s 12)

Section 12 of the Indian Contract Act discusses specific performance of part of a contract. It says that
generally, a court won't order specific performance for just a part of a contract; it's all or nothing.

However, there are some exceptions.

i)If one party can't do a small part of the contract but can compensate the other party with money,
the court might allow specific performance for the rest and give money as compensation for the
missing part.

ii)But if the missing part is a big or important piece, or if it can't be compensated with money, then
specific performance won't be ordered. Instead, the party who can't fulfill their part will have to pay
for what they can't do, and the other party can't ask for that missing part anymore.

Illustration, 'A' agreed to sell 'B' a piece of land measuring 100 acres, but it turns out that 'A' only
owns 98 acres, and 2 acres belong to someone else who won't sell. These 2 acres are not essential
for using the remaining 98 acres, and their loss can be compensated with damages. So, 'A' can be
required to convey 98 acres to 'B' and provide compensation for the 2 acres that can't be conveyed.
On the other hand, 'B' can be compelled to pay the purchase price, minus the compensation
amount, when 'A' demands it.

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Q) What is meant by specific performance? Who can claim it?

For intro refer the previous question

Persons Who May Obtain Specific Performance (Section 15):

Section 15 of the Specific Relief Act explains who can seek specific performance:

 Any party to the contract.

 The representative in interest or principal of any party, with exceptions if the contract's
material terms rely on the party's personal qualities.

 In cases of settlements on marriage or compromise of family rights, any person beneficially

entitled.

 In the case of a contract made by a tenant for life in the exercise of a power, the
remainderman.

 Reversioners in possession or remainder, subject to certain conditions.

 The new company formed through amalgamation when an original company enters into a
contract.
  The company itself when promoters entered into a contract before incorporation, and the
company has accepted and communicated the contract's acceptance.

Who Cannot Claim Specific Performance (Section 16):

Specific performance of a contract cannot be enforced in favor of or claimed by a person who falls
under the following conditions:

1. Substituted Performance (Section 20):

 If a person has obtained substituted performance of the contract under Section 20,
they cannot claim specific performance.

2. Incapability to Perform:

 If a person has become incapable of performing their part of the contract, they
cannot seek specific performance.

3. Violation of Essential Contract Term:

 If a person has violated any essential term of the contract that remains to be
performed by them, they cannot claim specific performance.

4. Acting in Fraud or Willful Variance:

 If a person has acted in fraud of the contract or willfully acted at variance with the
intended relationship established by the contract, they cannot seek specific
performance.

5. Failure to Prove Performance or Willingness to Perform:

 If a person has failed to prove that they have performed or have always been ready
and willing to perform the essential terms of the contract assigned to them (except
terms prevented or waived by the defendant), they cannot claim specific
performance.

In the case of I.T.C Ltd. v. George Joseph Fernandes, the court ruled that a person who makes
themselves a party to an illegal contract cannot enforce their rights under this section. This means
that if the contract is illegal, they cannot seek specific performance.

In the case of Rakha Singh v. Babu Singh, the court clarified that a plaintiff's failure to plead that
they had money in the bank and had not withdrawn it, when they had shown they were ready and
willing to pay the purchase price, was immaterial. This issue was a matter of evidence and did not
need to be specifically pleaded.

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Q) note on cancellation of an instrument

Section 31: Overview of Cancellation

 When a written instrument is void or voidable, and there's a reasonable fear that it may
cause serious harm if left unchanged, a person can file a suit to have it declared void or
voidable.
  The court has the discretion to declare the instrument void or voidable and order its delivery
and cancellation.

Who Can Seek Cancellation?

 Any person against whom a written instrument is void or voidable and who fears serious
harm from it can seek cancellation.

 Not only parties to the instrument but also those affected by it can take legal action.

Illustrative Case: Chajulal v. Gokul

 In this case, a neighbour wrongfully claimed rights over a property in a deed.

 The property owner was eligible to seek cancellation as the deed affected his title and
interest.

Partial Cancellation (Section 32)

 Under Section 32, the court can partially cancel an instrument, leaving the rest valid if
distinct rights or obligations are identifiable.

 The rights and obligations must be separable.

Illustrative Case: Ram Chander v. Ganga Saran

 In this case, an endorsement on a document was claimed to be a forgery.

 The court partially cancelled only the endorsement because it was separate from the rest of
the document.

Equity in Cancellation (Section 33)

 Section 33 emphasizes the principle of "he who seeks equity must do equity."

 It obligates the party obtaining the cancellation to return any benefits received from the
other party and provide compensation as justice requires.

 This applies when the plaintiff has not explicitly requested cancellation, but the defendant
successfully opposes enforcement due to the instrument being void or voidable.

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Q) Injunction – perpetual and temporary injunction, kinds

An injunction is a court order, that requires a person to do or abstain from doing an act that is
necessary in terms of justice, absence of which would be contrary to good faith and conscience.

Grant of injunction aims to restore the violated rights of a party, whereby monetary or
compensatory damages are insufficient. It follows the principles of natural justice and equity .

Injunction has three characteristic features

a)It’s a judicial process

b)Relief obtained is a restrain or preventive

c)Act prevented or restrained is wrongful

there are two kinds of injunction

1) Temporary injunction
2) Perpetual injunction

1) Temporary injunction : Section 37

A temporary injunction is a provisional relief that aims to protect the subject matter in the existing
condition, without the defendant’s interference or threat. It aims to protect the plaintiff from getting
disposed off, or his property (subject matter) being destroyed or harmed, or from any injury to the
plaintiff. The primary reason behind a temporary injunction is to protect the interests of an
individual or entity, till the final judgement is passed. A temporary injunction, when granted,
continues to remain for a specified period of time, or till the court deems fit.

When can it be granted?:

i) Whether the plaintiff has a prima facie case –

The plaintiff should establish a prima facie case. This means they don't need to prove a
clear title but must show a substantial question that requires investigation. The court
should be satisfied that there is a bona fide dispute raised by the applicant. Evidence
from the plaintiff's case, as presented in the plaint, affidavits, or other materials, guides
this determination
ii) An irreparable injury –
The plaintiff must demonstrate that if the injunction is not granted, irreparable injury
would be caused, and no other remedy is available to protect them from this feared
injury. Irreparable injury means that the harm cannot be adequately compensated
through damages. It doesn't necessarily imply that the injury is beyond any possibility of
repair.
iii) The conduct of plaintiff has not been blameworthy –
The plaintiff should come before the court with clean hands. If they suppress material
facts or documents, they may not be entitled to the relief of injunction. In such cases,
the court need not consider the points of balance of convenience or irreparable injury.
iv) The balance of convenience –
The court must determine that the balance of convenience favors granting the
injunction, and compensation in money would not be an adequate relief. This means
that the harm or inconvenience likely to be caused to the applicant by refusing the
injunction should be greater than that which would be caused to the opposite party by
granting it.

2) Perpetual or permanent injury section 38:

A permanent injunction (also known as perpetual injunction) is one that is delivered at the time
of the final judgement, and therefore is more often than not, prevalent for a longer period of
time. In this scenario, the Defendant is perpetually restrained from the commission of an act, or
the abstinence from the commission of an act, which would defeat the interests of the Plaintiff.

When can permanent injunction be granted?

Conditions for Section 38 to be applicable

1. There must be a legal right express or implied in favour of the applicant.

2. Such a right must be violated or there should be a threatened invasion.

3. It must be an existing right.

4. The case should be fit for the exercise of court’s discretion.

5. It should not fall within the sphere of the restraining provisions contained in or referred to in
Section 41 of the SRA, 1963.

Grant:

i) To prevent the breach of an obligation existing in favour of the applicant,

whether expressly or by implication
Illustration: Ram is a tenant at Shyam’s flat. Shyam has specifically asked Ram to
not displace the prayer room, as it had a gold statue of a deity. Ram wilfully
disobeyed and tried to remove the statue. Here, the court may grant a
permanent injunction, in order for Ram to fulfil the request of Shyam.

ii) When any such obligation arises from contract, the court shall be guided by the
rules and provisions contained in Chapter II i.e., only in cases where contract is
capable of specific performance.
Illustration: A contracts with B to sing for twelve months at B’s theatre and not
to sing in public elsewhere. B cannot obtain specific performance of the contract
to sing, but he is entitled to an injunction restraining A from singing elsewhere
iii) Where the defendant is a trustee of the property for the plaintiff.
Illustration: A, an advocate comes in possession of his client B’s documents
during employment. A threatens to communicate the contents of the document
to a third party/public. B may sue for an injunction to permanently restrain A
from doing so. An advocate is under an obligation in the nature of trust not to
disclose secrets of his clients
iv) Where there is no standard for ascertaining the actual damage caused, or likely
to be caused, to the plaintiff, by invasion of his rights.
Illustration: the installation of an electric transformer in front of the plaintiff’s
land causing nuisance, hindrance and obstruction to free access to the highway
was restrained by issuing permanent injunction.
v) Where the invasion of the plaintiff’s right is such that compensation in money
would not afford adequate relief.
Illustration: An injunction may be sought by an author of a book from restraining
a publisher from publishing the book without consent.
vi) Where injunction is necessary to prevent multiplicity of judicial proceedings.
Illustration: Arya has 7 tenants, out of which, 5 tenants have failed to pay the
rent for 5 months, consecutively. She files a suit against all of them, with the
same cause of action. The court may allow an injunction, in order to prevent
multiple proceedings, simultaneously.
Mandatory injunction:
A "mandatory injunction" is a legal remedy granted by the court when it is necessary to
compel a person to perform specific actions that can prevent the breach of an obligation.
This type of injunction requires the defendant to take positive steps to rectify a wrongful
 situation created by them or fulfill a legal obligation. For example, it might involve ordering
the demolition of a building that obstructs a neighbor's right to light.

In Section 39, it is stipulated that when the court deems it necessary to prevent a breach of
obligation and the required actions can be enforced by the court, it has the discretion to
grant a mandatory injunction. This injunction commands the defendant to perform certain
acts.
To grant a mandatory injunction under this section, two key factors are considered:

1. **Necessity of Acts:** The court must determine which specific actions are necessary to
prevent the breach of the obligation. In other words, what steps need to be taken to rectify
the situation or fulfill the legal duty.

2. **Enforceability:** The required actions must be such that the court has the capacity to
enforce them. The court should be able to ensure that the defendant complies with the
ordered actions.

In summary, a mandatory injunction is a court-ordered remedy used when it's essential to

compel specific actions to prevent a breach of obligation. The court considers what actions
are needed and whether it can enforce those actions before granting such an injunction.

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Q) Explain preventive relief and how the preventive relief will be granted.

Preventive relief is a legal remedy used in cases where the nature of the contract does not allow for
specific performance, and damages would not be an adequate remedy. In such situations, the court
can restrain a party from breaching the contract to the extent possible. For instance, if someone
contracts to sing at a specific place and also agrees not to perform elsewhere during the same period
but threatens to breach the contract, the court can't force them to sing, but it can enforce the non-
performance elsewhere clause by restraining them from performing elsewhere. This is known as
preventive relief

Injunctions:
Injunctions are a form of preventive relief. They are defined as a judicial process that restrains a
person from continuing or commencing a wrongful act that invades the rights of another. In simpler
terms, it's a court order that prevents someone from doing something wrong or compels them to do
a specific act.

Nature of Injunctions:

 Injunctions act in personam, meaning they are binding on the individual, not the
property. If person A obtains an injunction against person B to stop the construction
of a wall, and later person A sells the property to person C, the injunction still applies
to person B.

 Injunctions can be issued against individuals, public bodies, or even the State.
  Disobedience of an injunction can lead to consequences such as the attachment or
sale of property, as specified in Section 94(c) and Rule 2A of Order 39 of the Code of
Civil Procedure (CPC).

Characteristics of Injunctions:

1. Injunctions are a judicial process.

2. The relief obtained through an injunction is a restraint or prevention.

3. The act that is being restrained or prevented is wrongful.

Types of Injunctions: Preventive relief, which includes injunctions, can be granted at the discretion
of the court, and injunctions can be either temporary or perpetual. This discretion allows the court
to tailor the relief to the specific circumstances of the case (Section 36).

In summary, preventive relief, particularly in the form of injunctions, is a crucial legal remedy when
specific performance is not feasible, and damages are inadequate. Injunctions are court orders that
restrain individuals from wrongful actions or compel them to perform specific acts, and they can be
temporary or perpetual, depending on the court's discretion. These principles are governed by the
Specific Relief Act, Part III.

Preventive Relief = injunction (read that)

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