Which of the following is the BEST illustration of a contract that is 'determinable in nature' and therefore not specifically enforceable under Section 14(c)?
AA sale of immovable property
BAn employment contract for life
CA long-term lease for 99 years
DAn agency or distributorship terminable by either party at will or on short notice — specific performance is refused as the contract may be terminated unilaterally, making performance illusory
Answer & Solution
Correct answer: D. An agency or distributorship terminable by either party at will or on short notice — specific performance is refused as the contract may be terminated unilaterally, making performance illusory
Determinable contracts (terminable at the option of either party with little or no notice) are not specifically enforceable. Indian Oil Corporation v Amritsar Gas Service (1991) is the leading authority — once the defendant can terminate, specific performance becomes futile.
Related questions
The interface between Section 6 SRA (recovery of possession on the basis of possession) an'Substituted performance' under Section 20 SRA (post-2018) operatesThe 'ready and willing' requirement under Section 16(c) SRA must be pleaded and provedA 'mandatory injunction' under Section 39 SRAThe principle that 'equity treats as done that which ought to have been done' is reflectedUnder Section 53A of the TRANSFER OF PROPERTY Act 1882 (read with SRA principles), the docIn K Narendra v Riviera Apartments (1999), the Supreme Court refused specific performance Section 20A SRA (post-2018) creates a SPECIAL regime for