'P' a wholesale dealer in sugar, enters into an agreement with 'Q' that 'P' would not sell sugar beyond…
Section 27 of the Indian Contract Act declares every agreement restraining a person from exercising a lawful trade or business void, subject to limited statutory exceptions…
Choose your answer
'P' a wholesale dealer in sugar, enters into an agreement with 'Q' that 'P' would not sell sugar beyond a radius of one mile of his godown
Answer and explanation
Correct answer C
Section 27 of the Indian Contract Act declares every agreement restraining a person from exercising a lawful trade or business void, subject to limited statutory exceptions not applicable here, so "Agreement being in restraint of trade is void".
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