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of <h1>Section 27: Non-compete clauses in business sales allowed if reasonable local limits are set and buyer continues business.</h1> Every agreement that restricts an individual from pursuing a lawful profession, trade, or business is considered void under Section 27 of the Indian Contract Act, 1872. However, an exception exists for agreements where the seller of a business's goodwill agrees not to engage in a similar business within specified local limits. This restriction is valid as long as the buyer or their successors continue the business and the court deems the limits reasonable, considering the business's nature.
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