Indian Contract Act : Agreement in restraint of trade void Indian Bare Acts :

Indian Contract Act,1872

Act No : 9

Section : Agreement in restraint of trade void

27.Agreement in restraint of trade void.-Every agreement by whichany one is restrained from exercising a lawful profession, trade orbusiness of any kind, is to that extent void. Saving of agreement not to carry on business of which good-willis sold.-Exception 1.-One who sells the good-will of a business mayagree with the buyer to refrain from carrying on a similar business,within specified local limits, so long as the buyer, or any personderiving title to the good-will from him, carries on a like businesstherein, provided that such limits appear to the Court reasonable,regard being had to the nature of the business. 1* * * * *.