'A' a wholesale dealer in rice, enters into an agreement with 'B' that he would not sell rice beyond a…
Section 27 of the Contract Act makes every agreement in restraint of a lawful trade, profession or business void to that extent, unless it falls within the exception for…
Choose your answer
'A' a wholesale dealer in rice, enters into an agreement with 'B' that he would not sell rice beyond a radius of one mile of his godown:
Answer and explanation
Correct answer B
Section 27 of the Contract Act makes every agreement in restraint of a lawful trade, profession or business void to that extent, unless it falls within the exception for sale of goodwill. A's promise not to sell rice beyond one mile of his godown restrains his lawful trade and no exception applies, so the "Agreement is void"; it is not valid, and a void agreement is not merely voidable at B's option.
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