The effect of the provisions in Section 14 declared that following contract cannot be specifically enforced.
- Where compensation is adequate
- Contract involving personal Skill
- Contracts of Determinable Nature
- Contract requiring Constant supervision
- Where compensation is adequate- court will not order specific performance where the aggrieved party can be adequately compensated in terms of money.
- A contract to sell, and B contract to buy, a lakh of rupees in 4% of loan from Center Government.
In Meenashisundara v/s Rathnasami- it was held by the court that an ordinary contract to lend or borrow money whether with or without security is an example of a contract which cannot be specifically enforced.
- Contract involving personal Skill- it is not possible for the court to supervise the performance of a contract which deals with the personal qualifications of the promisor or is otherwise of volitional nature. Contract of employment, contract of personal services, contracts involving performance of artistic skill, is beyond the capacity of judicial process to enforce.
- A contracts to render personal services to B.
- A contracts to employ B on personal services.
- A, an author, contracts with B, a publisher, to complete a literary work. B cannot enforce specific performance of this contract.
In SB Dutt v/s University of Delhi- An employer may not be compelled to keep an employee in accordance with a contract of employment, in this Case the SC however, did not approve of an arbitrator's award reinstating a professor removed by the Delhi University.
- Contracts of Determinable Nature- Specific performance is not ordered to a contract which is in its nature determinable. No order of specific performance is likely to be passed when the contract is revocable at the option of the opposite party.
Illustration-A and B contract to become partners in a certain business, the contract did not specify the duration of the proposed partnership.
- Contract requiring Constant supervision- A contract cannot be enforced where it involves the performance of a continuous duty which the court cannot supervise. For example the obligation of a railway company to operate signals and to provide engine power.