All India Bar Examination (AIBE) 3-III Previous Year Question Papers with Answers

The correct option is B: Where the contract is to transfer immovable property.

This instance is most likely to be granted specific performance of the contractual obligation, because immovable property is unique and its value cannot be adequately compensated by money. According to Section 10 of the Specific Relief Act, 1963, the specific performance of any contract may be enforced by the court at its discretion, subject to certain conditions and limitations. One of the conditions is that the act agreed to be done must be such that compensation in money for its non-performance would not afford adequate relief. This condition is usually satisfied in the case of contracts to transfer immovable property, such as land, buildings, or rights over land. The court may order the party who has agreed to sell or convey the property to execute the deed and deliver possession to the buyer, or in case of breach, to pay damages for non-performance.

The other options are incorrect for the following reasons:

A: Where the contract is to transfer movable property. This instance is less likely to be granted specific performance of the contractual obligation, because movable property is usually not unique and its value can be adequately compensated by money. However, there are some exceptions where specific performance may be ordered for contracts to transfer movable property, such as when the property is of rare and special interest, or when it has a sentimental value to the buyer.

C: Where the trustee enters into the contract in breach of the trustee's powers. This instance is not likely to be granted specific performance of the contractual obligation, because it would violate the trust and affect the rights of the beneficiaries. According to Section 20 of the Specific Relief Act, 1963, specific performance of a contract cannot be enforced against.