Code: Section 16 of The Specific Relief Act
16. Personal bars to relief
Specific performance of a contract cannot be enforced in favor of a person:
(a) who has obtained substituted performance of the contract under section 20;
(b) who has become incapable of performing, violates any essential term of the contract that remains to be performed on their part, acts in fraud of the contract, or wilfully acts at variance with, or in subversion of, the relation intended to be established by the contract; or
(c) who fails to prove that they have performed or have always been ready and willing to perform the essential terms of the contract, other than those whose performance has been prevented or waived by the defendant.
Explanation:
For the purposes of clause (c):
(i) If the contract involves the payment of money, it is not necessary for the plaintiff to actually tender money or deposit it in court, unless directed by the court.
(ii) The plaintiff must prove performance of, or readiness and willingness to perform, the contract according to its true construction.
Explanation of Section 16:
Section 16 of the Specific Relief Act sets out the personal bars to relief for specific performance of a contract. It outlines the circumstances under which a person cannot seek the legal remedy of specific performance. This section emphasizes that only those who have met certain conditions are entitled to enforce a contract through this remedy.
Key Provisions:
- Substituted Performance: A person who has received substituted performance under Section 20 cannot seek specific performance.
- Inability or Breach: A party who becomes incapable of performing the contract, or who violates essential terms, is barred from claiming specific performance. This includes situations where the party acts fraudulently or in a manner that disrupts the intended relationship of the contract.
- Failure to Perform or Prove Willingness: If a party fails to prove that they have performed or were always ready and willing to perform their obligations, they cannot claim specific performance. The burden of proving performance or readiness falls on the party seeking specific performance.
Illustration:
Example 1: Substituted Performance
John enters into a contract with Sarah to supply goods. Sarah hires a third party to supply the goods instead of John. Since John has obtained substituted performance (the goods were supplied by another party), he cannot seek specific performance to enforce the original contract.
Example 2: Failure to Perform
Alice and Bob enter into a contract where Alice is to provide services to Bob. Alice fails to provide the services as agreed, and when Bob seeks to enforce the contract, Alice cannot claim specific performance because she has not proven that she was ready and willing to perform her obligations.
Example 3: Fraudulent Conduct
David and Emily enter into a contract where David is to sell property to Emily. However, David intentionally misrepresents the condition of the property to Emily, which results in fraud. David is then barred from seeking specific performance due to his fraudulent actions, even though Emily is willing to perform her part of the contract.
Common Questions and Answers on Section 16:
1. Can I still seek specific performance if I have already received performance from another party?
No, if you have obtained substituted performance under Section 20, you cannot claim specific performance.
2. What if I become unable to perform my part of the contract?
If you become incapable of performing your part of the contract, or if you breach any essential terms, you will be barred from claiming specific performance.
3. Do I have to actually pay money to prove I’m ready to perform?
No, if the contract involves the payment of money, you do not need to tender money or deposit it unless directed by the court. You just need to prove your readiness and willingness to perform.
4. Can fraudulent behavior affect my claim for specific performance?
Yes, if you act fraudulently or in a manner that disrupts the intended relationship of the contract, you will be barred from seeking specific performance.
Conclusion:
Section 16 of the Specific Relief Act provides critical limitations on who may claim specific performance of a contract. It ensures that only those who have acted in good faith, performed their obligations, or demonstrated willingness to perform may seek this legal remedy. Those who have violated contract terms or acted fraudulently are prevented from using specific performance to enforce the contract.
