A contract is an agreement between two or more persons upon a sufficient consideration to perform a certain obligation. If the person, upon whom such contractual obligation rests, fails to discharge it, the other person becomes entitled to a right either to insist on the actual performance of the contract or to obtain compensation for the non-performance of the contract. The right of the party to claim actual performance of the contract is called ‘Specific Performance’. It has been held that the award of Specific Performance is discretionary and is not obligatory on the part of the court to pass a decree of Specific Performance. While exercising its discretion, the validity of the contract in question is ascertained by the court. The decree of specific performance of contract is an equitable remedy which comes forth in the absence or inadequacy of any legal remedy that is to say, when the award of damages by the law is inadequate. In case, the loss or damage (caused by the breach of contract) can be compensated with money, the court does not grant specific performance of contract.