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Latest Specific Performance of Contracts MCQ Objective Questions

Top Specific Performance of Contracts MCQ Objective Questions

Specific Performance of Contracts Question 1:

In a suit of specific performance of a contract which of the following defences cannot be raised by opposite party.

  1. Contract is void because of impossibility
  2. Contract was no consensus ad idem between the parties.
  3. Contract is void due to unlawful consideration.
  4. All the above defences can be raised.

Answer (Detailed Solution Below)

Option 4 : All the above defences can be raised.

Specific Performance of Contracts Question 1 Detailed Solution

Explanation: sec 9 SRA tells that any person against whom specific relief is claimed may plead by way of defence any ground which is available to him under any law relating to contract. 

Specific Performance of Contracts Question 2:

In a suit of specific performance of a contract which of the following defences cannot be raised by opposite party.

  1. Contract is void because of impossibility
  2. Contract was no consensus ad idem between the parties.
  3. Contract is void due to unlawful consideration.
  4. All the above defences can be raised.

Answer (Detailed Solution Below)

Option 4 : All the above defences can be raised.

Specific Performance of Contracts Question 2 Detailed Solution

Explanation: sec 9 SRA says that any person against whom specific relief is claimed may plead by way of defence any ground which is available to him under any law relating to contract.

Specific Performance of Contracts Question 3:

The following contract cannot be specifically enforced 

  1. A contract the performance of which involves the performance of a continuous duty which the court cannot supervise. 
  2. A contract the performance of which involves the performance of a continuous duty which the court can supervise. 
  3. A Tort the discharge of which involves the performance of a continuous obligation 
  4. A contract for the non-performance of which compensation is not adequate relief  

Answer (Detailed Solution Below)

Option 1 : A contract the performance of which involves the performance of a continuous duty which the court cannot supervise. 

Specific Performance of Contracts Question 3 Detailed Solution

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. 

Specific Performance of Contracts Question 4:

Court’s power to award compensation is provided in Specific Relief Act 

  1. Under Section 20 
  2. Under Section 21 
  3. (1) and (2) 
  4. None of the above

Answer (Detailed Solution Below)

Option 2 : Under Section 21 

Specific Performance of Contracts Question 4 Detailed Solution

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.

Specific Performance of Contracts Question 5:

Which Section of the Specific Relief Act, 1963 says that specific performance of a contract can not be enforced in favour of a person who failed to prove his readiness and willingness to perform his part of contract?

  1. Section 13.
  2. Section 14.
  3. Section 15.
  4. Section 16.

Answer (Detailed Solution Below)

Option 4 : Section 16.

Specific Performance of Contracts Question 5 Detailed Solution

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.

Specific Performance of Contracts Question 6:

After the amendment to the Specific Relief Act, 1963, vide Amendment Act, 2018, to enforce specific performance in favour of plaintiff, his readiness and willingness_______

  1. shall be pleaded in the plaint and proved. 
  2. has to be pleaded in the plaint and proved.
  3. has to be proved.
  4. neither pleaded nor proved.

Answer (Detailed Solution Below)

Option 1 : shall be pleaded in the plaint and proved. 

Specific Performance of Contracts Question 6 Detailed Solution

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.

Specific Performance of Contracts Question 7:

Except as otherwise provided by Chapter II of the Specific Relief Act, 1963, the specific performance of a contract may be obtained by ______

  1. 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
  2. any party thereto
  3. where the contract is of a settlement on marriage, any person beneficially entitled thereunder
  4. All of these options

Answer (Detailed Solution Below)

Option 4 : All of these options

Specific Performance of Contracts Question 7 Detailed Solution

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.

Specific Performance of Contracts Question 8:

Rights of purchaser or lessee against person with no title or imperfect are related to:

  1. Section 12
  2. Section 13 
  3. Section 14
  4. None of the above

Answer (Detailed Solution Below)

Option 2 : Section 13 

Specific Performance of Contracts Question 8 Detailed Solution

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.

Specific Performance of Contracts Question 9:

Who may obtain specific performance?

  1. Any party thereto
  2. The representative in interest or principal of any party thereto
  3. A reversioner in possession
  4. All of the above

Answer (Detailed Solution Below)

Option 4 : All of the above

Specific Performance of Contracts Question 9 Detailed Solution

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.

Specific Performance of Contracts Question 10:

Which of the following statement is correct for the purposes of Section 21 of the Specific Relief Act, 1963?

  1. Compensation can only be awarded in those matters, where specific performance is not granted.
  2. The compensation cannot be awarded, where, plaintiff has not claimed the compensation in the suit.
  3. The compensation cannot be awarded, where, the contract has become incapable of specific performance.
  4. If the plaintiff has not claimed the compensation at the time of filing of the suit, he cannot amend his plaint, demanding compensation.

Answer (Detailed Solution Below)

Option 2 : The compensation cannot be awarded, where, plaintiff has not claimed the compensation in the suit.

Specific Performance of Contracts Question 10 Detailed Solution

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.

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