AdVocate harshit Sachar | chamber no: 617 | district courts ludhiana | 2817 gurdev nagar ludhiana | ✆+91 7889228369
Specific Performance of Contracts: When Courts Can Enforce an Agreement
Many people don’t realize that instead of only claiming damages, courts can direct the other party to actually perform their contractual promise (like transferring property).
PROPERTY LAWSCIVIL LAWS
Advocate Harshit Sachar, Ludhiana +91 7889228369
8/23/20253 min read


Introduction
In civil disputes, when one party fails to honour a contract, the other usually thinks of compensation in money. But in many cases, money alone cannot give justice. That’s where the remedy of Specific Performance comes in — where the court orders the defaulting party to actually fulfil their contractual obligation.
🔹 What is Specific Performance?
Specific performance is a legal remedy under the Specific Relief Act, 1963, where the court compels a party to perform their part of the contract instead of paying damages.
For example:
If a seller refuses to transfer land after receiving payment, the buyer can ask the court to direct the seller to execute the sale deed.
🔹 When Can Specific Performance Be Claimed?
Property Transactions – Sale of land, houses, or flats.
Unique Goods – Rare items, antiques, or things not easily available in the market.
Family Settlements or Agreements – When breach affects rights in immovable property.
🔹 When Courts May Refuse Specific Performance
Courts do not order specific performance in every case. It can be denied if:
The contract involves personal services (e.g., a contract to sing at an event).
The contract is uncertain or unfair.
The party seeking relief has not performed their own obligations.
The claim is filed after a long delay (limitation period is usually 3 years).
🔹 Why Specific Performance is Important
Protects buyers in property deals.
Prevents unfair advantage by the defaulting party.
Provides real justice instead of just money compensation.
🔹 Conclusion
If you are stuck in a property or business contract dispute, do not rely only on damages. Consult an advocate early to file for specific performance within the limitation period to protect your rights.
🔹 Legal Requirements Before Filing a Suit for Specific Performance
Before approaching the court, certain legal conditions must be satisfied:
There must be a valid and enforceable contract.
The terms of the agreement must be clear and certain.
The person seeking relief must show readiness and willingness to perform their part of the contract.
The suit must be filed within the limitation period of 3 years from the date of refusal or breach.
Courts carefully examine whether the plaintiff was genuinely ready to fulfil their obligations. Even minor inconsistencies in conduct can affect the outcome.
🔹 Readiness and Willingness – A Crucial Factor
In specific performance cases, the most important element is proving continuous readiness and willingness.
This means:
You had the financial capacity to complete the transaction.
You were prepared to execute documents.
You did not cause unnecessary delay.
Courts often dismiss suits where the buyer was not financially prepared or delayed action after breach.
🔹 Effect of Recent Legal Developments
After amendments to the Specific Relief Act, courts have increasingly treated specific performance as a rule rather than an exception in genuine contractual disputes, especially in property matters.
This strengthens the position of:
Buyers in real estate transactions
Parties to development agreements
Individuals relying on written contractual commitments
However, discretionary principles still apply in cases involving unfairness or hardship.
🔹 Interim Relief During the Suit
While the suit is pending, the aggrieved party can seek:
Temporary injunction to restrain sale to third parties
Status quo orders to protect possession
Prevention of creation of third-party rights
These interim protections are critical in property disputes to avoid complications during trial.
🔹 What Happens After Decree?
If the court grants specific performance:
The defendant is directed to execute the sale deed or perform the obligation.
If the defendant refuses, the court can authorize execution through court process.
The decree can be enforced through execution proceedings.
Thus, the court ensures that the agreement is actually implemented.
🔹 Practical Advice for Contracting Parties
Always enter into written agreements.
Preserve payment receipts and communication.
Issue legal notice promptly upon breach.
Avoid informal extensions without documentation.
Early legal action strengthens the case significantly.
Disclaimer
This article is for general informational purposes only and does not constitute legal advice. The outcome of specific performance cases depends on the terms of the contract, conduct of parties, and facts of each case. Professional legal advice should be obtained before initiating any proceedings.
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