LawgistThe Indian Contract Act
27Agreement in restraint of trade, void
Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void.
Exception 1.Saving of agreement not to carry on business of which good-will is sold.One who sells the good-will of a business may agree with the buyer to refrain from carrying on a similar business, within specified local limits, so long as the buyer, or any person deriving title to the good-will from him, carries on a like business therein, provided that such limits appear to the Court reasonable, regard being had to the nature of the business.
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1. Exceptions 2 and 3 rep. by Act 9 of 1932, s. 73 and the Second Schedule.
Void agreements
- 24 Agreement void, if considerations and objects unlawful in part
- 25 Agreement without consideration, void, unless it is in writing and registered, or is a promise to compensate for something done, or is a promise to pay a debt barred by limitation law
- 26 Agreement in restraint of marriage, void
- 27 Agreement in restraint of trade, void
- 28 Agreements in restraint of legal proceeding void
- 29 Agreements void for uncertainty
- 30 Agreements by way of wager, void
