Here the court ordered specific performance of a contractual obligation to carry out certain building works in advance of the date for performance under the contract. The dispute arose after the parties entered into a series of leases and agreements, during the period from 1990 to 2005. There was a requirement within those documents that the defendants, HAL and AP16, provide 280 free car parking spaces to the relevant site (the Site).
AP16 is a tenant of HAL of part, but not all, of the Site. AP16 denied that the obligation to build the car park had arisen, whilst acknowledging that if it had not created the car parking spaces by October 2016 it would be in breach of its obligation. The claimants and HAL sought specific performance of the obligation against AP16 . The claimants also sought specific performance against HAL. The court granted specific performance against AP16 for the benefit of HAL, but not the claimants, and allowed a further two years for completion of the work. It did not grant specific performance against HAL as they were not in possession of the site.
The decision confirms that a party may seek an order for specific performance before the date for completion of that performance has passed and the breach occurred.
To read more, please click here.