Specific Performance of Contracts MCQ Quiz in తెలుగు - Objective Question with Answer for Specific Performance of Contracts - ముఫ్త్ [PDF] డౌన్‌లోడ్ కరెన్

The correct answer is Option 1.

Key Points Section 14 in The Specific Relief Act, 1963
Contracts not specifically enforceable.—
(1) The following contracts cannot be specifically enforced, namely:—
    (a) a contract for the non-performance of which compensation in money is an adequate relief;
    (b) a contract which runs into such minute or numerous details or which is so dependent on the personal qualifications or volition of the parties, or otherwise from its nature is such,              that the court cannot enforce specific performance of its material terms;
    (c) a contract which is in its nature determinable;
    (d) a contract the performance of which involves the performance of a continuous duty which the court cannot supervise.

In line with the shift to a "pro-performance" regime, the newly substituted Section 14 has reduced the categories of contracts that are not specifically enforceable. 

Notably, these have been deleted: 

• Contracts where non-performance could be monetarily compensated;
• Contracts running into minute details or dependent on the volition of the parties;
• Contracts which from their nature are such that the court cannot enforce specific performance of material terms.

The amendment (2018) Section 14 now recognises only four categories of contracts that mandatorily "cannot be specifically enforced": 

• Contract where a party has obtained substituted performance under Section 20;
• Contract involving performance of a continuous duty which cannot be supervised by courts;
• Contract so dependent on the personal qualifications of the parties that the court cannot enforce specific performance of material terms; and 
• Contract of a determinable nature.

The last three grounds denying specific relief contemplate situation where enforcement of a contract is not possible. 

The correct answer is Under Section 21.

Key Points

• Section 21 of the Specific Relief Act, 1963 empowers courts to award compensation under specific circumstances. This serves as an important tool to ensure complete justice for parties whose civil or contractual rights have been violated.

Essential provisions regarding compensation:

• Section 21(1): Plaintiffs can claim compensation for breach of contract in addition to seeking specific performance. This allows for monetary relief alongside enforcement of the contract's terms.
• Section 21(2): If specific performance is deemed inappropriate, the court shall still award compensation if the plaintiff demonstrates a breach and entitlement to compensation.
• Section 21(3): Even when specific performance is granted, the court may also award compensation if deemed necessary for complete justice.
• Section 21(4): Compensation is determined based on the principles outlined in section 73 (Unliquidated damage), of the Indian Contract Act, 1872, which deals with the measure of damages for breach of contract.
• Section 21(5): Claiming compensation requires mentioning it in the initial plaint (petition). However, the court has the discretion to allow amendments at any stage, ensuring no prejudice to the plaintiff.

The correct answer is Option 4.

Key Points

• Section 16 of the Specific Relief Act, 1963 outlines personal bars to relief in cases of specific performance. According to this section, specific performance of a contract cannot be enforced in favor of a person who fails to prove that he has performed or has always been ready and willing to perform the essential terms of the contract that are to be performed by him.

• Option 1) Section 13 is incorrect. Section 13 deals with the conditions for granting specific performance but does not address the readiness and willingness of a party to perform the contract.

• Option 2) Section 14 is incorrect. Section 14 deals with the contracts that cannot be specifically enforced, such as contracts for personal services, contracts that are impossible, etc.

• Option 3) Section 15 is incorrect. Section 15 addresses contracts that are already performed and the court's discretion in granting specific performance.

Additional Information

• The readiness and willingness of the plaintiff to perform their part of the contract is a crucial element in a suit for specific performance. The court will only enforce specific performance if the plaintiff has shown that they have not only intended to perform but have also been ready to do so at all times.

The correct answer is shall be pleaded in the plaint and proved. 

Key Points

• Under Section 16(c) of the Specific Relief Act, 1963, even after the 2018 Amendment, the requirement that the plaintiff must plead and prove their readiness and willingness to perform their part of the contract remains intact.
• The 2018 Amendment removed discretion in granting specific performance in many cases, but did not alter the requirement under Section 16(c).
• The section still mandates that in order to obtain a decree of specific performance, the plaintiff must aver (plead) and must prove that they have always been ready and willing to perform their part of the contract.

The correct answer is Option 4.

Key Points

Under Section 15 of the Specific Relief Act, 1963 (India), the right to obtain specific performance of a contract belongs to several categories of persons, including:

1. Any party to the contract (Section 15(a)).
2. A reversioner in possession where the agreement is a covenant entered into with his predecessor in title and the reversioner is entitled to the benefit of such covenant (Section 15(c)).
3. Any person beneficially entitled under a marriage settlement (Section 15(d)).

Since the question lists each of these as separate options and asks who may obtain specific performance, the correct choice is that all of the listed categories (Options 1, 2, and 3) can do so. Hence, the correct answer is:

Option 4) All of these options.

The correct answer is Section 10

Key Points

• Section 10 of the Specific Relief Act, 1963 (as originally enacted) laid down when specific performance of a contract may be enforced.
• After the 2018 amendment, Section 10 now states that specific performance shall be enforced subject to certain limited exceptions. Earlier, it was discretionary; now, it is generally enforceable unless barred.
• This section sets the general rule for enforceability of specific performance.
• It provides the basis for when a court can direct a party to perform their contractual obligations rather than just awarding monetary compensation.

Additional Information

• Option 2.  Section 14: Deals with contracts which cannot be specifically enforced (like contracts involving personal skill, determinable contracts, etc.).
• Option 3.  Section 16: Deals with personal bars to relief, i.e., conditions when a person is not entitled to specific performance (e.g., if plaintiff is not ready and willing to perform).
• Option 4.  Section 18: Deals with situations where contracts are partially enforceable (part performance or in cases involving fraud, mistake, etc.).

The correct answer is Section 13 

Key Points

• Section 13 of the Specific Relief Act, 1963 deals with the rights of a purchaser or lessee against a person who has no title or has an imperfect title at the time of contract.
• It allows the purchaser or lessee to enforce specific performance in the following cases:
• Where the vendor/lessor has no title or only an imperfect title but subsequently acquires full title.
• If the vendor cannot prove ownership at the time of contract but is capable of acquiring it later, the buyer may still enforce the contract.
• This section protects the interest of bona fide purchasers or lessees who entered into the contract in good faith.

Additional Information

• Section 12 – Deals with specific performance of part of a contract.
• Section 14 – Lists contracts that cannot be specifically enforced.
• None of the above – Incorrect, as Section 13 is the right provision.

The correct answer is All of the above

Key Points

• Section 15 of the Specific Relief Act, 1963 specifies who may obtain specific performance of a contract. The following are eligible:
• Any party thereto
  • The party who has entered into the contract can seek specific performance.
• The representative in interest or principal of any party thereto
  • Legal heirs, assignees, or principals (like agents acting on behalf of someone) can also enforce specific performance.
• A reversioner in possession
  • A reversioner (a person who has future interest in the property but is currently in possession) can sue for specific performance under certain circumstances.

Additional Information

• Any party thereto – Correct but not complete; excludes others who are legally entitled.
• The representative in interest or principal – Also correct, but partial.
• A reversioner in possession – Valid, but limited scope compared to full range provided in Section 15.