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Section 27 — Agreement in Restraint of Trade Void
27
27
Agreement in Restraint of Trade Void
Indian Contract Act
Contracts, Voidable Contracts and Void Agreements
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Reviewed by Adv. Shailendra Babbar, Seasoned Advocate · Practicing since 31 years🗣️ Simple Explanation
If an agreement stops you from doing your job or business, it's usually not valid. Imagine a company saying you can't work for anyone else in the same field after you leave – that might be against this rule.
💡 Real Life Example
A and B agree that A will not open a shop in a certain area. This agreement is void because it restricts A's trade.
🛡️ KNOW YOUR RIGHTS
- •You have the right to pursue your profession or business freely.
- •Agreements that unreasonably restrict your trade are usually not enforceable.
Sources & References
📒 Legal text sourced from The Gazette of India & AdvocateKhoj Bare Acts Library
⚖️ Content reviewed by Adv. Shailendra Babbar, Seasoned Advocate, with 31 years of legal practice
📚 Act Reference: Indian Contract Act
Disclaimer: This content is for informational purposes only and does not constitute legal advice. Consult a qualified advocate for specific legal matters.
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