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PART II SPECIFIC RELIEF · CHAPTER II SPECIFIC PERFORMANCE OF CONTRACTS · PERSONS FOR OR AGAINST WHOM CONTRACTS MAY BE SPECIFICALLY ENFORCED · Substituted performance of contracts, etc

Section 23: Liquidation of damages not a bar to specific performance

The Specific Relief Act, 1963

(1) A contract, otherwise proper to be specifically enforced, may be so enforced, though a sum be named in it as the amount to be paid in case of its breach and the party in default is willing to pay the same, if the court, having regard to the terms of the contract and other attending circumstances, is satisfied that the sum was named only for the purpose of securing performance of the contract and not for the purpose of giving to the party in default an option of paying money in lieu of specific performance.

(2) When enforcing specific performance under this section, the court shall not also decree payment of the sum so named in the contract.

Questions on this section

3 questions in 8 of our papers cite Section 23. Try these from the free papers:

  1. 1. Under Section 23(1) of the Specific Relief Act, 1963, a contract that names a sum to be paid in case of its breach may still be specifically enforced, even though the party in default is willing to pay that sum, if the court is satisfied that the sum was named:

Practise questions on Specific Relief Act