A contract can be specifically enforced even if damages are granted by any court due to breach of contract by either of the parties. This provision is present in section 20 of Specific Relief Act 1877.
Liquidation of damages not a bar to specific performance
20. A contract, otherwise proper to be specifically enforced, may be thus 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.
Illustrations
A contracts to grant B an under-lease of property held by A under C, and that he will apply to C for a license necessary to the validity of the under lease, and that, if the license is not procured, A will pay B taka 10,000. A refuses to apply for the license and offers to pay B the taka 10,000. B is nevertheless entitled to have the contract specifically enforced it C consents to give the license.
(b)
Contracts which cannot be specifically enforced
Liquidation of damages not a bar to specific performance
20. A contract, otherwise proper to be specifically enforced, may be thus 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.
Illustrations
A contracts to grant B an under-lease of property held by A under C, and that he will apply to C for a license necessary to the validity of the under lease, and that, if the license is not procured, A will pay B taka 10,000. A refuses to apply for the license and offers to pay B the taka 10,000. B is nevertheless entitled to have the contract specifically enforced it C consents to give the license.
(b)
Contracts which cannot be specifically enforced
