Determinable Contracts V/S Specific Performance: Discretion Of Court

Introduction

Whilst trade and barter have existed since early times, the modern practice of forming business relationships through the means of contract has come into existence only since the industrial revolution in the West. In today's world, individuals as well as corporate entities enter different forms of contracts on a daily basis thereby creating a legally binding business relationship with another and explicitly recording the framework for carrying out arrangement agreed with another party. Such contracts provide not only the rights and obligations of the parties but also the manner in which the arrangement can be terminated.

The law relating to contracts in India is contained in Indian Contract Act, 1872. It determines the circumstances in which promises made by the parties to a contract would be legally binding on them. Under the Indian Contract Act, 1872, a contract is defined as an agreement enforceable by law.