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“Agreement in restraint of Legal proceedings” is provided under ______ of the Indian Contract Act, 1872.

Section 28 of the Indian Contract Act, 1872 governs agreements in restraint of legal proceedings. It makes an agreement void to the extent that it absolutely bars ordinary…

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“Agreement in restraint of Legal proceedings” is provided under ______ of the Indian Contract Act, 1872.

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Correct answer C

Section 28 of the Indian Contract Act, 1872 governs agreements in restraint of legal proceedings. It makes an agreement void to the extent that it absolutely bars ordinary legal proceedings to enforce contractual rights or limits the time for enforcing them. It also covers terms that extinguish rights or discharge liability after a specified period so as to restrict enforcement. The section saves certain arbitration agreements and qualifying written guarantee terms of banks and financial institutions. Sections 26, 27 and 29 deal with restraints of marriage, restraints of trade and uncertainty respectively.

Option feedback

Option A

Incorrect. "Section 26" of the Indian Contract Act, 1872 deals with agreements in restraint of marriage, declaring every agreement in restraint of the marriage of any person, other than a minor, void.

Option B

Section 27 concerns restraints on lawful professions, trades or businesses. It contains a limited exception for agreements connected with the sale of goodwill.

Option C

Section 28 governs restraints on enforcement of contractual rights through legal proceedings. Its rules are subject to the statutory exceptions.

Option D

Incorrect. "Section 29" of the Indian Contract Act, 1872 deals with agreements void for uncertainty, providing that agreements the meaning of which is not certain, or capable of being made certain, are void.

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