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'P' a wholesale dealer in sugar, sells sugar to 'Q' with a condition that 'Q' shall not sell the sugar…

The condition restricts Q's lawful resale trade to a geographical area and is void to that extent under section 27. The facts disclose no sale of goodwill or other…

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'P' a wholesale dealer in sugar, sells sugar to 'Q' with a condition that 'Q' shall not sell the sugar beyond one kilometer of 'P's godown. The agreement is:

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Correct answer C

The condition restricts Q's lawful resale trade to a geographical area and is void to that extent under section 27. The facts disclose no sale of goodwill or other applicable exception. A restraint is not saved merely because its territorial reach is limited. The statutory phrase to that extent means the invalid restraint does not necessarily invalidate separable parts of the sugar sale.

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