Agreement in restraint of trade, void
Chapter 3: Of contracts, voidable contracts and void agreements
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. 1 * *.
The Indian Contract Act, 1872 (Act No. 9 of 1872). From the updated text on India Code, with later amendments. Being checked against the official copy; amendment notes are not shown yet.
Related sections
- 24Agreement void, if considerations and objects unlawful in part
- 25Agreement 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
- 26Agreement in restraint of marriage, void
- 28Agreements in restraint of legal proceeding void
- 29Agreements void for uncertainty
- 30Agreements by way of wager, void