Code: Section 12 – The Specific Relief Act
12.
(1) Except as otherwise hereinafter provided in this section, the court shall not direct the specific performance of a part of a contract.
(2) Where a party to a contract is unable to perform the whole of his part of it, but the part which must be left unperformed is only a small proportion to the whole in value and admits of compensation in money, the court may, at the suit of either party, direct the specific performance of so much of the contract as can be performed, and award compensation in money for the deficiency.
(3) Where a party to a contract is unable to perform the whole of his part of it, and the part which must be left unperformed either—
(a) forms a considerable part of the whole, though admitting of compensation in money; or
(b) does not admit of compensation in money;
he is not entitled to obtain a decree for specific performance; but the court may, at the suit of the other party, direct the party in default to perform specifically so much of his part of the contract as he can perform, if the other party—
(i) in a case falling under clause (a), [pays or has paid] the agreed consideration for the whole of the contract reduced by the consideration for the part which must be left unperformed and in a case falling under clause (b) pays or has paid the consideration for the whole of the contract without any abatement; and
(ii) in either case, relinquishes all claims to the performance of the remaining part of the contract and all right to compensation, either for the deficiency or for the loss or damage sustained by him through the default of the defendant.
(4) When a part of a contract which, taken by itself, can and ought to be specifically performed, stands on a separate and independent footing from another part of the same contract which cannot or ought not to be specifically performed, the court may direct specific performance of the former part.
Explanation.—For the purposes of this section, a party to a contract shall be deemed to be unable to perform the whole of his part of it if a portion of its subject-matter existing at the date of the contract has ceased to exist at the time of its performance.
Explanation of Section 12 – The Specific Relief Act
Section 12 of the Specific Relief Act outlines the circumstances under which a court can order the specific performance of a part of a contract. Generally, specific performance can be ordered for the whole contract, but this section allows flexibility when only part of the contract is executable or when one party is unable to perform their entire obligation. The section is broken into several clauses:
- Sub-section (1): The general rule is that the court cannot order the specific performance of just part of a contract. The court will typically enforce the full contract, not portions of it.
- Sub-section (2): If the unperformed part of the contract is small in value compared to the whole contract and can be compensated by money, the court may order specific performance of the part that can be done and award compensation for the part that cannot be performed.
- Sub-section (3): If the unperformed part is significant or cannot be compensated with money, the court generally will not grant specific performance for the entire contract. However, if the other party agrees to pay the full consideration for the contract (with adjustments in the case of the unperformed part), and relinquishes claims for the unperformed portion, the court may order the part of the contract that can be performed.
- Sub-section (4): If a part of the contract can be specifically performed independently of the other part, the court may enforce the specific performance of that independent part, even if other parts of the contract cannot be performed.
Explanation: This section also provides a definition of “unable to perform the whole of his part of the contract.” This includes situations where part of the subject matter of the contract has ceased to exist at the time of performance.
Illustration
Example 1: Specific Performance of Part of a Contract with Minor Deficiency
A seller agrees to deliver 10,000 units of a particular product to a buyer, but is unable to deliver 500 units due to unforeseen circumstances. If the remaining 9,500 units are delivered and the unperformed 500 units can be compensated by money, the court may enforce the delivery of the 9,500 units and award compensation for the missing units.
Example 2: Non-Enforceability Due to Large Unperformed Portion
A contractor agrees to build a house for a client but is unable to complete a significant portion of the work. If the unfinished portion of the house forms a substantial part of the contract and cannot be compensated with money, the court will not grant specific performance of the entire contract.
Example 3: Specific Performance of an Independent Part of a Contract
A contract requires the construction of two separate buildings, but one building cannot be completed due to unforeseen circumstances. If the first building is complete and independent from the second, the court may enforce the specific performance of the first building, even if the second building cannot be completed.
Common Questions and Answers on Section 12 of the Specific Relief Act
1. Can a court order the specific performance of only a part of a contract?
- Answer: Generally, no. The court usually enforces the entire contract. However, under Section 12, if a party is unable to perform only a small part of the contract and it can be compensated with money, the court may order specific performance for the part that can be done and award money for the deficiency.
2. What if the unperformed part is significant and cannot be compensated by money?
- Answer: If the unperformed part forms a significant portion of the contract and cannot be compensated with money, the court will not order specific performance of the entire contract. However, if the other party pays the full agreed consideration and relinquishes all claims, the court may enforce the part of the contract that can be performed.
3. Can a contract for specific performance be divided into independent parts?
- Answer: Yes, under Section 12(4), if a part of the contract is independent and can be performed on its own, the court may direct specific performance of that part, even if other parts of the contract cannot be enforced.
Conclusion
Section 12 of the Specific Relief Act provides clarity on when a court can enforce the specific performance of part of a contract. The court generally enforces the entire contract, but exceptions exist for cases where part of the contract is unperformed. If the unperformed part is small and compensable with money, or if the parts of the contract are independent, the court may order performance of the executory parts and award compensation for any deficiencies.
