LAW OF SPECIFIC RELIEF 299
Whatever interest the seller acquires in the property subsequently to the contract, he will be compelled to convey to the purchaser.
Clause (b). —Is based upon the proposition that where the validity of a contract is dependent upon the concurrence of a stranger to the contract, and the stranger to the contract is bound to convey at the request of the Vendor or lessor, the Vendee and the lessee can compel him to obtain such concurrence.
Clause (c). —Is based upon the proposition that where the property sold or leased is represented as being free from encumbrance but is encumbered, the Vendor shall be compelled to free it from encumbrance sale of property which is mortgaged—Provided the price is not above the mortgage money.
Clause (d). —Clauses (a), (b) and (c) cover cases where the purchaser or lessee is the plaintiff suing for perfection of title.
Clause (d) covers a case where the suit is brought by the Vendor or lessor for Specific Performance and it fails because of his not being able to perfect the title.
In such a case the Court cannot only dismiss the suit with costs, but proceeds to award to the defendant purchaser a special relief viz —the return of his deposit with interest and his cost and a lien for all these on the property agreed to be sold or let.
General Rule regarding deposit. —Deposit is paid as a guarantee for the performance of the contract and where the contract fails by reason of the default of the purchaser, the vendor is entitled to retain the deposit.
Rights of Parties to a Contract to sue for Specific Performance
Four cases to be considered:—
I. For whom contracts may be specifically enforced.
II. For whom contracts cannot be specifically enforced.
III. Against whom contracts may be specifically enforced.
IV. Against whom contracts cannot be specifically enforced.