57: Injunction to perform negative agreement

Notwithstanding section 56, clause (f), where a contract comprises an affirmative agreement to do a certain act, coupled with a negative agreement, express or implied, not to do a certain act, the circumstance that the Court is unable to compel specific performance of the affirmative agreement shall not preclude it from granting an injunction to perform the negative agreement: provided that the applicant has not failed to perform the contract so far as it is binding on him. Illustrations (a) A contracts to sell to B for Rs.1,000 the good will of a certain business unconnected with business premises, and further agrees not to carry on that business in [Karachi]. B pays A the Rs. 1,000 but A carries on the business in [Karachi]. The Court cannot compel A to send his customers to B, but B may obtain an injunction restraining A from carrying on the business in [Karachi]. (b) A contracts to sell to B the good will of a business. A then sets up a similar business close by B’s shop and solicits his old customers to deal with him. This is contrary to his implied contract, and B may obtain an injunction to restrain A from soliciting the customers, and from doing any act whereby their good will may be withdrawn from B. (c) A contracts with B to sing for twelve months at B’s theatre and not to sing in public elsewhere. B cannot obtain specific performance of the contract to sing, but he is entitled to an injunction restraining A from singing at any other place of public entertainment. (d) B contracts with A that he will serve him faithfully for twelve months as a clerk. A is not entitled to a decree for specific performance of the contract. But he is entitled to an injunction restraining B from serving a rival house as clerk. (e) A contracts with B that, in consideration of Rs.l,000 to be paid to him by B on a day fixed, he will not set up a certain business within a specified distance. B fails to pay the money. A cannot be restrained from carrying on the business within the specified distance. SCHEDULE. [Enactments Repealed] Rep. by the Repealing and Amending Act, 1891 (XII of 1891).

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