Code: Section 11 – The Specific Relief Act
11.
(1) Except as otherwise provided in this Act, specific performance of a contract shall be enforced when the act agreed to be done is in the performance wholly or partly of a trust.
(2) A contract made by a trustee in excess of his powers or in breach of trust cannot be specifically enforced.
Explanation of Section 11 – The Specific Relief Act
Section 11 of the Specific Relief Act addresses the enforceability of contracts connected with trusts. It essentially allows for the specific performance of contracts when the act agreed to be done is related to the performance of a trust, either wholly or partially. However, this right to enforce the contract is limited by the following conditions:
- Sub-section (1) allows the enforcement of contracts that are tied to the performance of a trust, subject to the overall rules of the Specific Relief Act.
- Sub-section (2) restricts the enforcement of contracts made by a trustee if the contract exceeds the trustee’s powers or is in breach of the trust. Essentially, if a trustee acts outside their authority or violates the terms of the trust, the contract cannot be enforced under this section.
This section ensures that while trusts can be used as a basis for specific performance of contracts, the law protects the integrity of the trust by not allowing contracts that violate the trust’s terms or the trustee’s authority.
Illustration
Example 1: Enforceable Contract Linked to a Trust
A trustee is given the authority to sell a piece of property for the benefit of the trust’s beneficiaries. If the trustee enters into a contract to sell the property, this contract can be specifically enforced because it is in the performance of the trust.
Example 2: Non-Enforceable Contract by a Trustee Exceeding Authority
A trustee, without proper authorization, agrees to sell a property outside the scope of the trust’s terms. In this case, the contract cannot be specifically enforced because the trustee acted beyond their powers, violating Sub-section (2) of Section 11.
Common Questions and Answers on Section 11 of the Specific Relief Act
1. Can a trustee’s contract be enforced if it goes beyond the scope of the trust?
- Answer: No, under Sub-section (2) of Section 11, a contract made by a trustee in excess of their powers or in breach of the trust cannot be specifically enforced.
2. Is specific performance available for contracts that are partially connected with a trust?
- Answer: Yes, Section 11(1) allows for the specific performance of a contract that is partially in the performance of a trust, not just one that is wholly related to a trust.
3. What happens if a contract made by a trustee violates the trust’s terms?
- Answer: If a trustee enters into a contract that violates the trust’s terms, the contract cannot be enforced under Section 11(2), as it goes against the rules of the trust.
Conclusion
Section 11 of the Specific Relief Act governs the enforceability of contracts linked to the performance of trusts. While contracts made in connection with trusts are generally enforceable, they cannot be enforced if the trustee exceeds their authority or breaches the trust. This ensures that contracts related to trusts are only enforced within the boundaries of the trustee’s powers and the trust’s terms, preserving the trust’s integrity and legal obligations.
