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CA Foundation · Business Laws · The Indian Contract Act, 1872

Kiran Sweets agreed to sell a shop to Lata for Rs 40 lakh. Kiran later refused to complete the sale and Lata wants the court to compel transfer of the shop. Which remedy is the most appropriate, and why?

Lata should seek specific performance. Courts order a defaulting party to carry out the contract when money damages would not be adequate, and immovable property such as a shop is treated as unique. Quantum meruit and an injunction against Lata do not compel the sale.

  1. ASpecific performance, since land and buildings are unique and money damages are generally inadequateCorrect
  2. BQuantum meruit, since part of the work is already done
  3. CInjunction against Lata, since she is the aggrieved party
  4. DOnly rescission, since specific performance is never available for property

Explanation

Specific performance is ordered where damages are not an adequate remedy, as with immovable property that is unique. Quantum meruit applies to payment for work done, not to compel a sale. Specific performance is not barred for property; it is the typical remedy.

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