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himanshu   09 January 2015

Question:contract void or valid??

Question:Is a contract formed under the scenario of exclusive rights to a product restricting trade with other parties as a vendor is a valid or a void contract under the agreement in restraint of trade??

 

 

Kindly post and let me know.Thanks



Learning

 4 Replies

prateekjain   09 January 2015

If you are the manufacturer of the product you can make such type of contract. Nevertheless you have exclusive right to sell that product then also you can make such contact. But there is no exclusivity in respect of the product then the contact may fall under the category of restrictive trade pesticides depending upon the subject matter and terms and conditions if the contact.

himanshu   10 January 2015

Thanks a lot very helpful

T. Kalaiselvan, Advocate (Advocate)     14 January 2015

It again depends on the agreed terms and conditions of the contract.  The clauses for restriction may apply to a valid contract.


(Guest)

Your query lacks basic facts and background of the problem, if there is any.

 

However, products are not made to remain untraded. So, your question seems to be flawed & defective, if you think "exclusive rights to a product restricting trade with other parties as a vendor." A contractor can supply a product after purchase from the authorised distributor or retailer. So, the question of a contract being void cannot arise.


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