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        Indian Laws

        Section 27 - Agreement in restraint of trade void

        Indian Contract Act, 1872
        Chapter IIa
        Void agreements

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        Restraint of trade: covenants barring a seller after goodwill sale are permissible only within reasonable local limits while buyer continues business. An agreement restraining a person from exercising a lawful profession, trade or business is void, except that a seller of business goodwill may covenant not to carry on a similar business within reasonable local limits while the buyer or successor continues that business there.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Restraint of trade: covenants barring a seller after goodwill sale are permissible only within reasonable local limits while buyer continues business.

                              An agreement restraining a person from exercising a lawful profession, trade or business is void, except that a seller of business goodwill may covenant not to carry on a similar business within reasonable local limits while the buyer or successor continues that business there.


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