Code: Section 15 of The Specific Relief Act
15. Who may obtain specific performance
Except as otherwise provided by this Chapter, the specific performance of a contract may be obtained by:
(a) any party to the contract;
(b) the representative or principal of any party to the contract:
Provided that if the contract’s execution depends on personal qualities, such as skill or solvency, or if the contract restricts assignment, the representative or principal may not claim specific performance unless the original party has already performed their part or the other party accepts the representative’s performance.
(c) in case of marriage settlements or compromises between family members, any person entitled to benefit from the agreement;
(d) a tenant for life, in case of a contract exercised under a power, the remainderman;
(e) a reversioner in possession, when the contract is a covenant with their predecessor in title and benefits the reversioner;
(f) a reversioner in remainder, when the covenant benefits them and they will suffer significant harm from its breach;
(fa) when a limited liability partnership enters into a contract and later amalgamates with another, the new partnership resulting from the merger;
(g) when a company enters into a contract and later amalgamates with another, the new company formed from the merger;
(h) when promoters of a company enter into a contract before incorporation, and the contract is essential to the company’s purpose, the company:
Provided the company accepts the contract and informs the other party of this acceptance.
Explanation of Section 15:
Section 15 defines who may seek specific performance of a contract under the Specific Relief Act. This is a legal remedy where a court compels a party to fulfill their contractual obligations, rather than just paying damages.
Key Points:
- Primary Right to Performance: The party directly involved in the contract may claim specific performance.
- Representatives or Principals: If the contract is based on personal qualities (such as skill or solvency), only the original party or their representative may claim specific performance.
- Marriage and Family Settlements: In the case of settlements made in a marriage contract or family disputes, anyone entitled to benefit from it may enforce specific performance.
- Tenants and Remaindermen: Tenants with life interests or those who inherit property rights can claim specific performance when a contract involves property agreements.
- Reversioners’ Rights: Individuals inheriting the rights to a property can enforce specific performance if a covenant benefits them.
- Post-Amalgamation Claims: If companies or limited liability partnerships merge, the new entity can seek specific performance of pre-existing contracts.
- Promoter-Company Contracts: When a company’s promoters enter into contracts before incorporation, the company itself can enforce these contracts once it is formed, provided it agrees to them.
Illustration:
Example 1: Representative in Interest Seeking Specific Performance
A contract is made for the sale of land, but the original buyer assigns their rights to another person. If the contract was based on the buyer’s financial stability or skill, the assignee can only seek performance if the original buyer has fulfilled their obligations or if the seller accepts the assignee’s actions.
Example 2: Reversioner Seeking Performance of Covenant
A property agreement was made by a tenant for life. After the tenant’s death, the reversioner (the next rightful owner) may enforce the contract if it benefits them and is breached.
Example 3: Post-Amalgamation Enforcement
Company X enters into a contract. Later, Company X merges with Company Y, forming Company Z. Company Z may claim specific performance of the contract originally signed by Company X, as the new company inherits all the rights and obligations.
Common Questions and Answers on Section 15:
1. Can anyone other than the contracting parties claim specific performance?
Yes, representatives, remaindermen, or those with an interest in the contract’s benefits can claim specific performance under specific conditions.
2. Can a company enforce a contract after merging with another company?
Yes, the company formed from the merger inherits the right to seek specific performance of contracts signed by the original companies.
3. Do personal qualities like skill matter in who can seek performance?
Yes, if the contract depends on personal qualities like skill or solvency, only the original party or their accepted representative can seek specific performance.
4. Can a reversioner claim specific performance of a covenant?
Yes, a reversioner who inherits property rights may claim specific performance if the agreement was made with their predecessor and benefits them.
Conclusion:
Section 15 of the Specific Relief Act outlines who may claim specific performance of a contract. The law ensures that individuals with a legitimate interest in a contract, such as the contracting parties, their representatives, or even companies after mergers, can enforce the contract if necessary. This helps preserve rights and interests, particularly in property and business matters.
