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 'OPTION 2.'

Key Points

• Understanding Section 21 of the Specific Relief Act, 1963:
  • Section 21 of the Specific Relief Act, 1963 deals with the awarding of compensation in cases involving specific performance of contracts.
  • It allows the court to award compensation to the plaintiff even if specific performance is not granted, provided the compensation is claimed in the suit.
  • The primary condition is that the plaintiff must have explicitly claimed compensation in the original suit.

Additional Information

• Examining other options:
  • Compensation can only be awarded in those matters, where specific performance is not granted: This is incorrect because compensation can be awarded irrespective of whether specific performance is granted or not, as long as it is claimed.
  • The compensation cannot be awarded, where, the contract has become incapable of specific performance: This is incorrect because compensation can still be awarded even if the contract cannot be specifically performed, provided it was claimed.
  • If the plaintiff has not claimed the compensation at the time of filing of the suit, he cannot amend his plaint, demanding compensation: This is incorrect as the court may allow the plaintiff to amend the plaint to include the claim for compensation, subject to certain conditions.

The correct answer is Option 4

Key PointsSection 21 of the Specific Relief Act allows plaintiffs in specific performance suits to claim compensation for breach of contract.

• If specific performance is denied but breach is established, compensation is awarded.
• Even if specific performance is granted but insufficient, compensation can be awarded.
• The court determines compensation based on principles from Section 73 of the Indian Contract Act.
• Plaintiffs must initially claim compensation in their plaint, but can amend it later if omitted.

The correct answer is OPTION 3

Key Points

• Section 9 of the Specific Relief Act, 1963, provides for Defences respecting suits for relief based on contract.
• It states that —Except as otherwise provided herein where any relief is claimed under this Chapter in respect of a contract, the person against whom the relief is claimed may plead by way of defence any ground which is available to him under any law relating to contracts.