Specific Performance Vs. Damages: Understanding Remedies Under The Contract Act
- IJLLR Journal
- May 8
- 2 min read
Ayush Gupta, O.P. Jindal Global University
A. Introduction
The foundation of contract law is the idea that contracts must be upheld once they are made; this idea is ingrained in both common law and statute systems. India's legal framework for enforcing contractual obligations is established by the Indian Contract Act, 1872, which closely resembles English common law. The remedies for contract violations, including damages and particular performance, are at the heart of this system. However, due to court interpretations and statutory amendments—especially with the introduction of the Specific Relief (Amendment) Act, 2018—the applicability and preference of certain remedies have changed considerably. Using real-world examples, current events, and judicial tendencies, this study critically analyses the changing trend in Indian contract law about the preference between damages and particular performance.
B. Reconceptualizing Remedies in Indian Contract Law: Damages and Specific Performance through a Theoretical Lens
a) The necessity of offering sufficient remedies in the event that one party defaults on its duties is at the core of contract law. This system of remedies is intended to uphold the fundamental values of justice, fairness, and the sanctity of contracts in addition to putting the harmed party back in the same position they would have been in had the contract been fulfilled. Damages and particular performance are the two most commonly used remedies for breach of contract among the available remedies. Specific performance requires the party who violates the contract to fulfils the terms of the agreement, especially when it comes to rare or irreplaceable items and property, whereas damages seek to offer monetary recompense for losses suffered.
b) In order to go beyond conventional notions of these remedies, this theoretical investigation critically examines the changing dynamics between damages and specific performance in the framework of Indian contract law, particularly referencing economic efficiency theory, legal realism, and justice theory.
