Saturday 28 July 2012

Exception to Section 56 of Specific Relief Act

An exception to section 56 of Specific Relief Act is present in Section 57 of the same act. Kindly read it as it is reproduced below with illustrations. 

57. Notwithstanding section 56, clause (f), where a contract comprises an affirmative agreement to do a certain act, coupled with a negative agreement, express or implied, not to do a certain act, the circumstance that the Court is unable to compel specific performance of the affirmative agreement shall not preclude it from granting an injunction to perform the negative agreement: provided that the applicant has not failed to perform the contract so far as it is binding on him.
Illustrations
(a) A contracts to sell to B for taka 1,000 the good-will of a certain business unconnected with business-premises, and further agrees not to carry on that business in Chittagong. B pays A the taka 1,000 but A carries on the business in Chittagong. The Court cannot compel A to send his customers to B, but B may obtain an injunction restraining A from carrying on the business in Chittagong. (b) A contracts to sell to B the good-will of a business. A then sets up similar business close by B's shop and solicits his old-customers to deal with him. This is contrary to his implied contract, and B may obtain an injunction to restrain A from soliciting the customers, and from doing any act whereby their good-will may be withdrawn from B.
(c) A contracts with B to sing for twelve months as B's theatre and not to sing in public elsewhere, B cannot obtain specific performance of the contract to sing, but he is entitled to an injunction restraining A from singing at any other place of public entertainment.
(d) B contracts with A that he will serve him faithfully for twelve months as a clerk. A is not entitled to a decree for specific performance of the contract. But he is entitled to an injunction restraining B from serving a rival house as clerk. (e) A contracts with B that, in consideration of taka 1,000 to be paid to him by B on a day fixed, he will not set up a certain business within a specified distance. B fails to pay the money. A cannot be restrained from carrying on the business within the specified distance.

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