Specific performance is an equitable remedy granted by a court ordering a party in breach to perform their contractual obligations as agreed, rather than merely paying damages. It is typically awarded when monetary compensation would be an inadequate remedy, such as in contracts for unique property or goods.
Specific Relief Act 1963 (amended 2018) governs specific performance. Section 10 (pre-2018) made specific performance discretionary; the 2018 amendment made it a general rule and not a discretionary remedy. Courts must order specific performance unless the contract is inequitable, impossible, or the plaintiff is in default. Section 20 allows substituted performance by a third party.
English courts grant specific performance where damages are inadequate — typically for land, unique goods, and shares in private companies. Personal service contracts and contracts requiring continuous supervision are excluded. Cooperative Insurance v Argyll Stores [1998] HL restricted its use for running a business.
Courts of equity grant specific performance for real property (land is presumed unique), unique goods (UCC § 2-716), and certain service contracts (with limitations against personal service). Damages remain the preferred remedy.
The Specific Relief (Amendment) Act 2018 amended Section 10 of the Specific Relief Act 1963. From 2018 onwards, specific performance is granted as a rule, not an exception, unless the contract is substituted, impossible, or inequitable. This was a major change for infrastructure and real estate contracts.
No, in both India and UK. Courts will not force a person to perform personal services (employment, professional services). The reasoning is practicality and concerns about compelled labour. Injunctions restraining breach of a negative covenant may be available instead.
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