As per the Indian Contract Act, 1872, an agreement in restraint of trade or business, is to that extent —
An agreement restraining a lawful trade or business is generally void to that extent under section 27. This means the restraint itself is unenforceable, rather than…
Choose your answer
As per the Indian Contract Act, 1872, an agreement in restraint of trade or business, is to that extent —
Answer and explanation
Correct answer A
An agreement restraining a lawful trade or business is generally void to that extent under section 27. This means the restraint itself is unenforceable, rather than enforceable unless a party chooses to avoid it. The Act includes a stated exception for a reasonable local restraint connected with the sale of business goodwill.
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