Contracts which cannot be specifically enforced

If a contract has any uncertain provisions, then the court will not enforce it. If a contract is revocable, then the court cannot enforce it. For example, if the parties explicitly agreed in the contract that it is revocable at any time, then the court will not acknowledge the contract or require specific performance.

If a trustee enters into a contract when he or she has no authority to do so, then the contract will be deemed invalid, and the court will not allow it nor will it grant specific performance. If the duty of performance is to continue for more than three years, then the court will not enforce the contract or require specific performance.

The two bighas are not necessary for the use or enjoyment of the 98 bighas , nor so important for such use of enjoyment that the loss of them may not be made good in money. A may be directed at the suit of B to convey to B the 98 bighas and to make compensation to him for not conveying the two remaining bighas ; or B may be directed, at the suit of A, to pay to A, on receiving the conveyance and possession of the land, the stipulated purchase-money less a sum awarded as compensation for the deficiency.

The Court may direct specific performance of the contract notwithstanding the parties are unable to agree as to the valuation of the furniture, and may either have the furniture valued in the suit and include it in the decree for specific performance, or may confine its decree to the house. But the Court may, at the suit of the other party, direct the party in default to perform specifically so much of his part of the contract as he can perform, provided that the plaintiff relinquishes all claim to further performance, and all right to compensation either for the deficiency, or for the loss or damage sustained by him through the default of the defendant.

It turns out that 50 bighas of the land belong to A, and the other 50 bighas to a stranger, who refuses to part with them. The garden is important for the enjoyment of the house. It turns out that A is unable to convey the garden.

If in any such suit the Court decides that specific performance ought not to be granted, but that there is a contract between the parties which has been broken by the defendant and that plaintiff is entitled to compensation for that breach, it shall award him compensation accordingly.

If in any such suit the Court decides that specific performance ought to be granted, but that it is not sufficient to satisfy the justice of the case, and that some compensation for breach of the contract should also be made to the plaintiff, it shall award him such compensation accordingly. Compensation awarded under this section may be assessed in such manner as the Court may direct. A contracts to sell a hundred mounds of rice to B. B brings a suit to compel A to perform the contract or to pay compensation.

The Court is of opinion that A has made a valid contract and has broken it, without excuse, to the injury of B but that specific performance is not the proper remedy. It shall award to B such compensation as it deems just. A fails to perform his part of the contract, and B brings his suit for specific performance and compensation, which is decided in his favour on the 1st January, A, a purchaser, sues B, his vendor, for specific performance of a contract for the sale of a patent.

Before the hearing of the suit the patent expires. The Court may award A compensation for the non-performance of the contract, and may, if necessary, amend the plaint for that purpose. A sues for the specific performance of a resolution passed by the Directors of a public company, under which he was entitled to have a certain number of shares allotted to him, and for compensation for the non-performance of the resolution. All the shares had been allotted before the institution of the suit.

The Court may, under this section, award A compensation for the non-performance. A contracts to grant B an under-lease of property held by A under C, and that he will apply to C for a license necessary to the validity of the under-lease, and that, if the license is not procured, A will pay B Rs. A refuses to apply for the license and offers to pay B the Rs. B is nevertheless entitled to have the contract specifically enforced if C consents to give the license. And, save as provided by the [18] [Arbitration Act, [19] ], no contract to refer [20] [present or future differences] to arbitration shall be specifically enforced; [21] but if any person who has made such a contract [22] [other than an arbitration agreement to which the provisions of the said Act apply] and has refused to perform it sues in respect of any subject which he has contracted to refer, the existence of such contract shall bar the suit.

A contracts to sell, and B contracts to buy, 40 chests of indigo at rupees 1, per chest:. The above contracts cannot be specifically enforced, for in the first and Second both A and B, and in the third A, would be reimbursed by compensation in money. A contracts to render personal service to B:. A contracts to employ B on personal service:. A, an author, contracts with B, a publisher, to complete a literary work: B cannot enforce specific performance of these contracts.

A and B each name a valuer , but before the valuation is made, A instructs his valuer not to proceed:. By a charter-party entered into in [25] [Chittagong] between A, the owner of a [26] [ aeroplane ], and B, the charterer, it is agreed that the [27] [ aeroplane ] shall proceed to [28] [Lahore] and there load a cargo of rice, and thence proceed to London, freight to be paid, one-third on arrival at [29] [Lahore], and two-thirds on delivery of the cargo in London: A lets land to B and B contracts to cultivate it in a particular manner for three years next after the date of the lease:.

A and B contract that, in consideration of annual advances to be made by A, B will for three years next after date of the contract grow particular crops on the land in his possession and deliver them to A when cut and ready for delivery:.

A contracts with B that, in consideration of rupees 1, to be paid to him by B, he will paint a picture for B:.

A contracts with B to execute certain works which the Court cannot superintend:. A contracts to supply B with all the goods of a certain class which B may require:. A contracts to marry B:. The above contracts cannot be specifically enforced. A, the owner of a refreshment-room, contracts, with B to give him accommodation there for the sale of his goods and to furnish him with the necessary appliances. A refuses to perform his contract. The case is one for compensation and not for specific performance, the amount and nature of the accommodation and appliances being undefined.

A and B contract to become partners in a certain business, the contract not specifying the duration of the proposed partnership. This contract cannot be specifically performed, for, if it were so performed, either A or B might at once dissolve the partnership. A is a trustee of land with power to lease it for seven years.

He enters into a contract with B to grant a lease of the land for seven years, with a covenant to renew the lease at the expiry of the term. This contract cannot be specifically enforced. The Directors of a company have power to sell the concern with the sanction of a general meeting of the shareholders. They contract to sell it without any such sanction. Two trustees, A and B, empowered to sell trust-property worth a lakh of rupees contract to sell it to C for Rs. The contract is so disadvantageous as to be a breach of trust.

C cannot enforce its specific performance. The promoters of a company for working mines contract that the company, when formed, shall purchase certain mineral property. They take no proper precautions to ascertain the value of such property- and in fact agree to pay an extravagant price therefore. They also stipulate that the vendors shall give them a bonus out of the purchase-money. A company existing for the sole purpose of making and working a railway contract for the purchase of a piece of land for the purpose of erecting a cotton-mill thereon.

Specific performance of this contract must be refused to B. A contracts to pay an annuity to B for the lives of C and D. It turns out that, at the date of the contract, C, though supposed by A and B to be alive, was dead.

The contract cannot be specifically performed. The following are cases in which the Court may properly exercise a discretion not to decree specific performance C contracts to buy, and B contracts to sell, that interest. Before the contract is completed, A receives a mortal injury from the effects of which he dies the day after the contract is executed.

If B and C were equally ignorant or equally aware of the fact, B is entitled to specific performance of the contract. If B knew the fact, and C did not, specific performance of the contract should be refused to B. This indebtedness is known to A, but not to B. Specific performance of the contract should be refused to A. To protect the land from floods, it is necessary for its owner to maintain an expensive embankment.

B does not know of this circumstance, and A conceals it from him. C does this inadvertently and in good faith. The lot is knocked down to B at a low price. Specific performance of the contract should be refused to B. Where the performance of the contract would involve some hardship on the defendant which he did not foresee, whereas its non-performance would involve no such hardship on the plaintiff.

The purchase-money is not nearly enough to discharge those encumbrances, though, at the date of the contract, the vendors believed it to be sufficient. Specific performance of the contract should be refused to D. The estate really comprises a valuable property, not known to either to be part of it.

Specific performance of the contract should be refused to B unless he waives his claim to the unknown property. It is found afterwards that A cannot make the road without exposing himself to litigation.

Specific performance of the part of the contract relating to the road should be refused to B, even though it may be held that he is entitled to specific performance of the rest with compensation for loss of the road. The contract is silent as to access to the land. No right of way to it can be shown to exist. The Court cannot compel B to supply the goods, but if he does not supply them, A may be ruined unless he is allowed to buy them elsewhere.

The following is a case in which the Court may properly exercise a discretion to decree specific performance Where the plaintiff has done substantial acts or suffered losses in consequence of a contract capable of specific performance. A sells land to a railway-company, who contracts to execute certain works for his convenience. The company takes the land and use it for their railway. Specific performance of the contract to execute the works should be decreed in favour of A.

D For whom contracts may be specifically enforced. E For whom contracts cannot be specifically enforced. A is in reality acting, not as agent for B, but on his own account. A cannot enforce specific performance of this contract. A contracts to sell B a house and to become tenant thereof for a term of fourteen years from the date of the sale at a specified yearly rent.

A becomes insolvent. Neither he nor his assignee can enforce specific performance of the contract. A contracts to sell B a house and garden in which there are ornamental trees, a material element in the value of the property as a residence. A cannot enforce specific performance of the contract. A, holding land under a contract with B for a lease, commits waste, or treats the land in an unhusbandlike manner.

A contracts to let, and B contracts to take, an unfinished house, B contracting to finish the house and the lease to contain covenants on the part of A to keep the house in repair. B finishes the house in a very defective manner: he cannot enforce the contract specifically, though A and B may sue each other for compensation for breach of it. A contracts to let, and B contracts to take, a house for a specified term at a specified rent.

B refuses to perform the contract. A thereupon sues for, and obtains, compensation for the breach. A cannot obtain specific performance of the contact. A cannot enforce specific performance of this contract, even though C is willing to confirm it. B gives a general prospective assent in writing to any sale which the trustees may make. The trustees then enter into a contract with C to sell him the land.

C refuses to carry out the contract. On inquiry it turns out that A claims the land as heir of B, who left the country several years before, and is generally believed to be dead, but of whose death there is no sufficient proof. A cannot compel Z specifically to perform the contract.

A cannot enforce specific performance of this contract so as to override the settlement, and thus prejudice the interest of the persons claiming under it.

D can obtain the performance sought only with the variation thus set up. B proves that he assumed that the contract included an adjoining yard, and the contract was so framed as to leave it doubtful whether the yard was so included or not. The Court will refuse to enforce the contract, except with the variation set up by B. B then signed the written contract.

A cannot obtain specific performance of the written contract, except with the variation set up by B. They execute a contract, the terms of which are found to confer an absolute ownership on B.

The contract so framed cannot be specifically enforced. B then sues to enforce specific performance of the contract in writing. He cannot enforce it except with the variations made by the subsequent oral contract.

A contracts to convey certain land to B by a particular day, A dies intestate before that day without having conveyed the land.

A contracts to sell certain land to B for Rs. A afterwards conveys the land for Rs. B may enforce specific performance of the contract as against C. A contracts to sell land to B for Rs. B takes possession of the land. Afterwards A sells it to C for Rs. For Example , A and B entered into a contract which involves a condition that it may get terminated after some time. So in a condition or nonperformance of the contract, none of the parties may enforce the duty of performance on the other party involved in a contract under this Act.

In this case, the High Court of M. It was held that since there was a promise to employ four persons the appellants should not be permitted to wriggle out the promise by taking the plea that Section 14 of the Act bars a suit of this nature filed by the petitioner for enforcement of duty. The appellant and one Smt Bimla Devi T. Admittedly the said agreement was terminated by the respondent by a notice dated in terms of clause 55 of the said agreement.

Thus the court did not provide the petitioner with the relief as the agreement got terminated. The court rejected this petition and did not give relief under the said Act it does not fulfill the conditions of the Act. It was submitted that the case of the plaintiff was not one for specific performance as this was a case wherein terms of clause 3 of the said agreement, the said defendants could have been ordered to pay double the amount of earnest money i. Shri Gude has further submitted that the case at hand is also a case in which the Court cannot supervise the agreement between the parties.

Hence it was submitted that the default in non-execution of the sale deed was on the part of the plaintiff in reference to Section 14 of the Specific Relief Act Specific Relief Act of gives a right to the party involved in a contract and in which due to nonperformance of the contract, any of the parties may enforce the nonperforming party to perform their duty as many times compensation may not satisfy the other party which suffered damages due to nonperformance of the contract.

Section of this act talks about the Contracts which cannot be specifically enforced under the Specific Relief Act,