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  • A and B had a similar business in the same locality in Calcutta. B agreed with A that he will pay a certain amoun

A and B had a similar business in the same locality in Calcutta. B agreed with A that he will pay a certain amount to him if he shuts down the business in that locality. A closed his business in that locality, but B later refused to pay the amount. A sued him. Decide

Option: 1

Agreement is void


Option: 2

Agreement is valid


Option: 3

Agreement is void ab initio


Option: 4

B should pay A the amount.


Answers (1)

best_answer

The agreement between both is void and not enforceable as it is a case of complete restraint of trade. Hence option A.

Posted by

shivangi.bhatnagar

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