In a contract between the parties there is a stipulation that in case of breach of contract defaulter will be liable to pay rs.25000 as damages to innocent party. Now contract is violated by one party and defaulting party is ready to pay the stipulated amount. Can there be specific performance of contract?
1
Contract cannot be specifically performed as amount is already stipulated in the contract.
2
Contract can still be specifically performed if the court is of the opinion that amount is for stipulated for securing the specific performance of the contract.
3
Since the defaulting party is willing to pay the amount, there is no other option.
4
Specific performance can be done.