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IAI Actuarial Core Principles · Business Management · Implied terms, exclusion of liability, contractual remedies and damages

Meera, an actuary, agreed to provide a valuation report to Deccan Pension Trust. Before she started, the trustees asked the court to compel her personally to perform the work under the contract, though she had fallen out with them. Which statement best explains why a court is unlikely to grant this?

A court is unlikely to order it because contracts for personal services are generally not specifically enforced. Forcing a professional to work for someone she has fallen out with cannot be effectively supervised and is undesirable, so the trustees would normally be left with a claim for damages.

  1. ACourts ordinarily refuse specific performance of contracts for personal services, as compelling performance is impractical and undesirableCorrect
  2. BSpecific performance is only available against companies, not individuals
  3. CSpecific performance is available only after damages have been paid in full
  4. DA valuation report is a unique chattel so only damages apply
  5. Specific performance can only be sought by the party who has already performed

Explanation

Contracts for personal services, especially ones requiring skill and mutual confidence, are generally not specifically enforced. Courts cannot supervise such work and forcing a person to work is undesirable. The trustees would be left to seek damages.

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