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Cases in which specific performance of contracts connected with trusts enforceable

Cases in which specific performance of contracts connected with trusts enforceable :

Section 11 lays down that except as otherwise provided in this Act, specific performance of a contract may, in the discretion of the Court, be enforced when the act agreed to be done is in the performance wholly or partly of a trust. But if a trustee enters into a contract in excess of his powers then such a contract cannot be specifically enforced.

Illustrations

A contracts with B to paint a picture for B and B agrees to pay Rs. 1000 for the same. The picture is painted. ‘B’ is entitled to have it delivered to him on payment or tender of Rs. 1,000.

A is a trustee of land with power of lease it for 7 years. He enters into a contract with B to grant a lease of the land for 7 years, with a covenant to renew the lease at the expiry of the term. This contract cannot be specifically enforced.

The directors of company have power to sell the concern with the sanction of a general meeting of the shareholders, Directors contract to sell it without any such sanction. This contract cannot be specifically enforced.

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