Contracts are Not Specifically Enforceable
Contracts Not Specifically Enforceable
Definition:
A contract is said to be not specifically enforceable when the court cannot compel the parties to perform it exactly as agreed.
Under Section 10 and 56 of the Indian Contract Act, 1872, some contracts are valid but the law does not enforce their exact performance, though damages may be claimed.
In simple terms:
The parties cannot be forced to do what they promised, but they may receive monetary compensation if the contract is broken.
Key Principles:
Specific performance is not always granted:
Courts grant specific performance only in certain cases (like sale of unique property).
If performance is impossible, impractical, or involves personal service, courts do not enforce it.
Alternative remedy:
Even if the contract is not enforceable specifically, the injured party can claim damages.
Types of Contracts Not Specifically Enforceable
Contracts involving personal service
Examples: Employment contracts, contracts to act as a teacher, singer, or artisan.
Court cannot force someone to work against their will.
Breach of personal service contract → only damages are awarded, not specific performance.
Contracts which are continuous or dependent on personal discretion
Examples: Contracts of partnership, contracts requiring continuous judgment.
Contracts which are illegal or immoral
Example: Agreement to commit an illegal act → void.
Contracts involving uncertain terms or future contingencies
Example: Agreement to deliver goods “if possible” without fixed quantity or time.
Examples:
| Contract Type | Specific Enforcement? | Remedy Available |
|---|---|---|
| Employment contract | No | Damages |
| Personal services (artist, doctor, teacher) | No | Damages |
| Sale of goods (standardized goods) | Sometimes | Specific performance possible if unique |
| Illegal contracts | No | Void |
Case Law Examples:
Ranganayakamma v Alwar Setty (1977)
Facts: Personal service agreement.
Held: Cannot enforce specific performance; only damages.
Balfour v Balfour (1919) AC 801
Facts: Agreement between husband and wife for monthly allowance.
Held: Contract not enforceable in court; domestic agreements generally not specifically enforceable.
Adams v Lindsell (1818)
Shows that breach of a contract with delay leads to damages but not necessarily enforcement.
Summary / Key Points:
Not all valid contracts can be enforced specifically.
Specific performance is an equitable remedy, granted only when money damages are insufficient.
Contracts not specifically enforceable:
Personal services
Contracts dependent on personal discretion
Domestic or social agreements
Contracts where enforcement is impossible or unreasonable
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