Comprehension
“The Specific Relief Act, 1963 was enacted to define and amend the law relating to certain kinds of specific relief. It contains provisions, inter alia, specific performance of contracts, contracts not specifically enforceable, parties who may obtain and against whom specific performance may be obtained, etc. It also confers wide discretionary powers upon the courts to decree specific performance and to refuse injunction, etc. As a result of wide discretionary powers, the courts in majority of cases award damages as a general rule and grant specific performance as an exception. The tremendous economic development since the enactment of the Act have brought in enormous commercial activities in India including foreign direct investments, public private partnerships, public utilities infrastructure developments, etc., which have prompted extensive reforms in the related laws to facilitate enforcement of contracts, settlement of disputes in speedy manner. It has been felt that the Act is not in tune with the rapid economic growth happening in our country and the expansion of infrastructure activities that are needed for the overall development of the country.
In view of the above, it is proposed to do away with the wider discretion of courts to grant specific performance and to make specific performance of contract a general rule than exception subject to certain limited grounds. Further, it is proposed to provide for substituted performance of contracts, where a contract is broken, the party who suffers would be entitled to get the contract performed by a third party or by his own agency and to recover expenses and costs, including compensation from the party who failed to perform his part of contract. This would be an alternative remedy at the option of the party who suffers the broken contract. It is also proposed to enable the courts to engage experts on specific issues and to secure their attendance, etc.
A new section 20A is proposed for infrastructure project contracts which provides that the court shall not grant injunction in any suit, where it appears to it that granting injunction would cause hindrance or delay in the continuance or completion of the infrastructure project... Special courts are proposed to be designated to try suits in respect of contracts relating to infrastructure projects and to dispose of such suits within a period of twelve months from the date of service of summons to the defendant and also to extend the said period for another six months in aggregate, after recordings reasons therefor.” [Extracted from Statement of Objects and Reasons, the Specific Relief (Amendment) Bill, 2017].
In view of the above, it is proposed to do away with the wider discretion of courts to grant specific performance and to make specific performance of contract a general rule than exception subject to certain limited grounds. Further, it is proposed to provide for substituted performance of contracts, where a contract is broken, the party who suffers would be entitled to get the contract performed by a third party or by his own agency and to recover expenses and costs, including compensation from the party who failed to perform his part of contract. This would be an alternative remedy at the option of the party who suffers the broken contract. It is also proposed to enable the courts to engage experts on specific issues and to secure their attendance, etc.
A new section 20A is proposed for infrastructure project contracts which provides that the court shall not grant injunction in any suit, where it appears to it that granting injunction would cause hindrance or delay in the continuance or completion of the infrastructure project... Special courts are proposed to be designated to try suits in respect of contracts relating to infrastructure projects and to dispose of such suits within a period of twelve months from the date of service of summons to the defendant and also to extend the said period for another six months in aggregate, after recordings reasons therefor.” [Extracted from Statement of Objects and Reasons, the Specific Relief (Amendment) Bill, 2017].
Question: 1
At present, which of the following is the correct proposition as regards the specific performance of a contract
At present, which of the following is the correct proposition as regards the specific performance of a contract
Updated On: Nov 7, 2024
- As a general rule, the specific performance of a contract is now a general remedy
- As a general rule, the specific performance of a contract is enforced by the court when there exists no standard for ascertaining actual damage caused by the non-performance of the act agreed to be done
- As a general rule, the specific performance of a contract is enforced by the court when the act agreed to be done is such that compensation in money for its non-performance would not afford adequate relief
- Both (B) and (C).
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The Correct Option is A
Solution and Explanation
Specific performance is typically enforced when damages cannot be adequately
measured or monetary compensation is insufficient to address the harm caused by non-performance.
The correct option is (A): As a general rule, the specific performance of a contract is now a general remedy
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Question: 2
At present, the specific performance of a contract is enforced by the court subject to:
At present, the specific performance of a contract is enforced by the court subject to:
Updated On: Nov 7, 2024
- The provisions contained in sections 11(2) and 16 of the Specific Relief Act, 1963
- The provisions contained in sections 11(2), 16 and 20 of the Specific Relief Act, 1963.
- The provisions contained in sections 11(2), 14 and 20 of the Specific Relief Act, 1963.
- The provisions contained in sections 11(2), 14 and 16 of the Specific Relief Act, 1963.
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The Correct Option is D
Solution and Explanation
Specific performance is enforced based on Sections 11(2), 14, and 16 of the Specific
Relief Act, which outline conditions and exceptions.
The correct option is (D): The provisions contained in sections 11(2), 14 and 16 of the Specific Relief Act, 1963.
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Question: 3
Which of the following is the correct proposition regarding ‘substituted performance of a contract’?
Which of the following is the correct proposition regarding ‘substituted performance of a contract’?
Updated On: Nov 7, 2024
- Where the contract is broken due to non-performance of promise by any party, the party who suffers by such breach has the option of substituted performance through a third party or by his own agency, and recover the expenses and other costs actually incurred, spent or suffered by him, from the party committing such breach
- The party who suffers by breach of contract can concurrently obtain substituted performance of the contract and specific performance against the party in breach
- Both (A) and (B).
- Neither (A) nor (B)
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The Correct Option is A
Solution and Explanation
Substituted performance allows the aggrieved party to have the contract performed
by a third party and recover expenses from the breaching party.
The correct option is (A): Where the contract is broken due to non-performance of promise by any party, the party who suffers by such breach has the option of substituted performance through a third party or by his own agency, and recover the expenses and other costs actually incurred, spent or suffered by him, from the party committing such breach
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Question: 4
The dismissal of a suit for specific performance of a contract or part thereof _______ the plaintiff’s right to sue for compensation for the breach of such contract or part, as the case may be, ______ his right to sue for any other relief to which he may be entitled, by reason of such breach:
The dismissal of a suit for specific performance of a contract or part thereof _______ the plaintiff’s right to sue for compensation for the breach of such contract or part, as the case may be, ______ his right to sue for any other relief to which he may be entitled, by reason of such breach:
Updated On: Nov 7, 2024
- Shall not bar; but shall bar
- Shall bar; but shall not bar
- Shall bar; but shall bar
- Shall not bar; nor shall it bar.
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The Correct Option is B
Solution and Explanation
The dismissal of a specific performance suit does not bar the plaintiff from seeking
compensation or other reliefs for the breach.
The correct option is (B): Shall bar; but shall not bar
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Question: 5
The ___, in consultation with the ____, shall designate, by notification published in the Official Gazette, one or more Civil Courts as Special Courts, within the local limits of the area to exercise jurisdiction and to try a suit under the Specific Relief Act, 1963 in respect of contracts relating to infrastructure projects:
The ___, in consultation with the ____, shall designate, by notification published in the Official Gazette, one or more Civil Courts as Special Courts, within the local limits of the area to exercise jurisdiction and to try a suit under the Specific Relief Act, 1963 in respect of contracts relating to infrastructure projects:
Updated On: Nov 7, 2024
- Central Government; Chief Justice of India.
- State Government; Chief Justice of India
- State Government; Chief Justice of the High Cour
- Central Government; Chief Justice of the High Court.
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The Correct Option is C
Solution and Explanation
The State Government, in consultation with the Chief Justice of the High Court,
designates Special Courts for infrastructure-related contract disputes under the Specific Relief Act
The correct option is (C): State Government; Chief Justice of the High Cour
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