All India Bar Examination (AIBE) 6-VI Previous Year Question Papers with Answers

The correct option is A: When the act agreed to be done is such that compensation in money for nonperformance will not give sufficient relief.

Specific performance is an equitable remedy in the law of contract, whereby a court issues an order requiring a party to perform a specific act, such as to complete performance of the contract. It is typically available in the sale of land law, but otherwise is not generally available if damages are an appropriate alternative. The reason for this is that specific performance is a discretionary remedy, and the court will only grant it if it is the best way to place the innocent party in the same position they would have been in if the contract had been executed properly and correctly. 

Some of the factors that the court may consider in deciding whether to order specific performance are:

- The nature of the contract and the subject matter involved. For example, contracts involving real property and rare chattels are more likely to be specifically enforced than contracts involving ordinary goods or services.
- The availability of substitute performance or adequate compensation. For example, if the party who breached the contract can provide a similar performance or pay a fair amount of damages, then specific performance may not be necessary.
- The hardship or inconvenience caused to the party who breached the contract by ordering specific performance. For example, if the performance would involve a continuous duty that the court cannot supervise, or a contract of personal nature that would affect the party's freedom or privacy, then specific performance may not be appropriate.
- The good faith and conduct of both parties. For example, if the party who breached the contract acted fraudulently, dishonestly, or maliciously, then specific performance may be more likely to be ordered. On the other hand, if the party seeking specific performance acted unreasonably, delayed, or waived their rights, then specific performance may be less likely to be ordered.

Therefore, option A is correct because it reflects the principle that specific performance is only ordered when damages are not sufficient to remedy the breach of contract. Option B is incorrect because it contradicts this principle. Option C and D are incorrect because they are examples of situations where specific performance may not be ordered, but they do not cover all possible scenarios.