MCQ 28 Nov 2023

Daily Static MCQs for CLAT Prelims Exams - (28 November 2023)



In a recent judgment, the Supreme Court disallowed the claim for damages raised in lieu of specific performance of contract citing the reason that the plaintiff had not specifically sought the relief of compensation in the plaint. The Court referred to Section 21(5) of the Specific Relief Act which says: No compensation shall be awarded under this section unless the plaintiff has claimed such compensation in his plaint: Provided that where the plaintiff has not claimed any such compensation in the plaint, the court shall, at any stage of the proceeding, allow him to amend the plaint on such terms as may be just, for including a claim for such compensation. The issue is related to contractual disputes between the appellant and the respondent. The appellant had filed a plaint seeking specific performance of the agreement with the respondent and sought a perpetual injunction against the termination notice issued by the respondent. Though the High Court granted the relief of injunction, the relief of specific performance was denied citing the bar in Section 14 (1) (b) of the Specific Relief Act, 1963. The High Court observed that the contract involves the performance of future unspecified obligations and duties, and it would not be possible for the Court to enforce specific performance of the material terms of the contract. The High Court further held that it was an open-ended agreement involving the continuous flow of technology for innovating and overhauling the products which are upgraded from time to time to meet world-class standards. Therefore, though the termination agreement was found to be not in accordance with law the specific performance of the contract was not granted. The Supreme Court noted that the judgments relied on by the appellant were distinguishable on facts. The Court held: The scope of Section 21 (4) and (5) was examined by this Court in Shamsu Suhara Beevi v. G. Alex and Another (supra). This Court referred to the Law Commission of India's recommendation that in no case the compensation should be decreed unless it is claimed by a proper pleading. However, the Law Commission was of the opinion that it should be open to the plaintiff to seek an amendment to the plaint, at any stage of the proceedings in order to introduce a prayer for compensation, whether in lieu or in addition to specific performance. In the said case no claim for compensation for breach of agreement of sale was claimed either in addition to or in substitution of the performance of the agreement. Admittedly, there was no amendment to the plaint asking for compensation either in addition or in substitution of the performance of an agreement of sale.

Question1:-Ankita entered into an agreement with Dhairya to sell her house situated in Varanasi for a sum of 500000. Rs. 100000 was to be paid in advance and the rest of the amount after execution of the sale deed. After 4 months, Ankita filed a suit against Dhairya for specific performance of the contract alleging that Dhairya failed to execute the sale deed as per their agreement. Dhairya took the defense by stating that Ankita has only paid 50000 in advance. Decide.
  • A. Ankita will succeed in a suit for specific performance because Dhairya did not execute the sale deed.
  • B. Ankita will succeed in a suit for specific performance because money is not an adequate compensation here.
  • C. Ankita will succeed in a suit for specific performance as well as compensation because Dhairya failed to perform her part of the agreement.
  • D. Ankita will not succeed in a suit for specific performance because she herself has not performed her part of the agreement.
Answer is D is correct. The correct answer is option D. In the case of N.P. Thirugnanam v. Dr. R.J. Mohan Rao, the Court while rejecting the plaintiff’s claim of specific performance of the contract held that the petitioner was reluctant and hesitant to perform his part of the duty and the court dismissed the petition on grounds of negligence and hesitancy by the plaintiff.This is a landmark judgment wherein the court interpreted the importance of the performance of the contract by the plaintiff in specific relief cases. If the plaintiff has failed to perform his part of the contract, he cannot be allowed to succeed against the defendant for the same in a suit for specific performance.
Question2:-Elina entered into a contract with Katrina to buy the only painting of the famous painter who is dead, and the price of the painting is unascertainable. After receiving the sum of money, Katrina refused to deliver the painting. Decide:
  • A. Elina will succeed in a suit for specific performance because actual damage is unascertainable
  • B. Elina will succeed in a suit for specific performance because Katrina has taken the money
  • C. Elina will not succeed in a suit for specific performance because actual damage is ascertainable
  • D. Elina will not succeed in a suit for specific performance because money is adequate damage
Answer is A is correct. According to Section 10 of the Specific Relief Act 1963, there are certain conditions in which specific performance of the contract is enforceable. One such condition is when actual damage is unascertainable because there is no standard for ascertaining the same. The fact that it was the only painting of the painter who is now dead and whose price cannot be ascertained makes a suit for specific performance of the contract enforceable. Hence, A is the correct option.
Question3:-Catelyn, a well-known painter in the town, entered into a contract with Lysa to deliver Lysa’s painting in two weeks. Catelyn died before the delivery of the painting. Lysa filed a suit for the specific performance of the contract against Catelyn’s son. Decide.
  • A. Lysa will succeed in a suit for specific performance because actual damage is unascertainable
  • B. Lysa will succeed in a suit for specific performance against Catelyn's legal representatives.
  • C. Lysa will not succeed in a suit for a specific performance because Catelyn’s son is not a painter
  • D. Lysa will not succeed in a suit for specific performance because the contract depends upon the skills
Answer is D is correct. Section 14 of the Specific Relief Act 1963, which deals with certain contracts that cannot be specifically enforced. One such contract is that depends upon the personal qualification or skills of the parties. Here the contract was based on Catelyn’s personal qualifications and skills which cannot be specifically enforced against anyone including her son. Hence, D is the correct option.
Question4:-Rose, a famous dancer entered into a contract with lily, a concert manager wherein it was decided that Rose will perform in the concert for consideration of 40000 Rs. per performance. On the day of the concert, Rose could not perform due to her illness. Lily filed a suit for the specific performance of the contract. Decide.
  • A. Lily will succeed in a suit for specific performance because it is not based on skill or qualification
  • B. Lily will succeed in a suit for a specific performance because anyone can perform
  • C. Lily will not succeed in a suit for specific performance because the contract depends upon the skills
  • D. Lily will not succeed in a suit for a specific performance because Rose will perform in future concerts
Answer is C is correct. In the case of Robinson v Davison, the court discussed the enforceability of a contract wherein one party cannot participate due to death or illness. Such a contract cannot be specifically enforced because it depends on the skills and personal qualifications of Rose. Hence, C is the correct option.
Question5:-Dahlia entered into a contract with Jasmine to buy a thousand-year-old ancient family heirloom that once belonged to the great ancestors of Jasmine for a sum of 4 lakhs. After receiving the money, jasmine refused to deliver the heirloom. Decide whether Dahlia will succeed in a suit for specific performance against Jasmine.
  • A. Dahlia will succeed because money is not an adequate compensation
  • B. Dahlia will not succeed because money is an adequate compensation
  • C. Dahlia will succeed because it is a contract based on skills and personal qualifications
  • D. Dahlia will not succeed because it is an illegal contract
Answer is A is correct. The correct answer is option A. A suit for specific performance of the contract will succeed when money is not adequate compensation. Money is not adequate compensation in the case of property or goods that are not ordinary articles of commerce i.e. they can be sold or purchased in the market.