When a contract is broken by a party, there are several courses of action which the other party may pursue;
(i) he can refuse further performance of the contract (ii) he can also resist a suit for specific performance. In these cases he acts as a defendant. As plaintiff, however he has other courses open to him also: (i) he can also bring and action for specific performance or (ii) for injunction or (iii) for damages for breach of contract against the other party (iv) or for some or more of the above reliefs. (v) He can also sue to have it declared that the contract is no longer binding on him. Of these various remedies, only one, viz. of the damages for breach is treated by the contract Act (sec 73-74). The remedies by way of specific performance, in junction and declaration are dealt with the Specific Relief Act.
Specific Performance means the actual carrying out of the contract as agreed. The court has power, under certain condition to compel a party to carry out his agreement in terms, instead of paying money compensation or damages for its breach. The remedy of specific performance, however, is discretionary and will not generally been granted when
(i) compensation in money is an adequate relief (ii) when the court cannot supervise the actual carrying out of the contract; e.g. a building contract or a contract of service (ii) where the contract is its nature revocable; (iv) or is made by trustees or corporations in excess of their powers. Specific performance is usually granted with regard to contract for sale of land and for taking of debentures in a company. In case of goods it is granted only where the goods are of a special or unique kind, not easily available in the market.
Injunction is an order of a Court restraining a person from doing a particular act. It is given to enforce a negative stipulation in a contract, where damages would be an adequate relief. The negative stipulation may be express or implied. An agreement to take all the electricity required for one’s premises for a certain person implies and agreement not to take the same from any other person.
A breach of such an agreement therefore could be restrained by injunction. A breach of a contract of personal service, however, will not been restrained by injunction, unless the negative stipulation is express . The remedy by way of injunction is governed by secs. 52-57 and that by way of declaratory decree is governed by secs. 35, 36, 42 and 43 of the Specific Relief Act.