Under Section 27 of the Indian Contract Act, 1872 in which of the following relations is an agreement…
The exception to section 27 allows the seller of goodwill to agree with the buyer to refrain from a similar business within specified local limits while the buyer carries on…
Choose your answer
Under Section 27 of the Indian Contract Act, 1872 in which of the following relations is an agreement in restraint of trade valid?
Answer and explanation
Correct answer C
The exception to section 27 allows the seller of goodwill to agree with the buyer to refrain from a similar business within specified local limits while the buyer carries on that business there, provided the limits are reasonable. The goodwill exception does not validate every restraint of trade.
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