Contract Act, 1872 Section 27 | Agreement in restraint of trade void.

Contract Act, 1872 Section 27

Agreement 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.

Exception 2[----- Rep]