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  • A was the owner of a fleet of buses that used to ply between Pune and Mahabaleshwar. B also had a similar busines

A was the owner of a fleet of buses that used to ply between Pune and Mahabaleshwar. B also had a similar business in the same area. To avoid competition, A bought the B's business along with the goodwill, and by contract made him agree not to open a similar business in the area for 3 years. B did not comply and started his business. Decide

Option: 1

Agreement is valid


Option: 2

 Agreement is void ab initio


Option: 3

The agreement was valid, as it fell within the exception to Section 27.


Option: 4

The agreement is void.


Answers (1)

best_answer

Section 27 of the Act mentions only one exception validating restraint of trade, i.e., Sale of Goodwill. Hence option C is correct.

Posted by

Devendra Khairwa

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