Section 27Agreement in Restraint of Trade Void
27
27
Agreement in Restraint of Trade Void
Indian Contract Act
Contracts, Voidable Contracts and Void Agreements
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Reviewed by Adv. Shailendra Babbar, Seasoned Advocate · Practicing since 31 years
📅 Updated 2026-03-31📚 Source: The Gazette of India
🗣️ Simple Explanation

If an agreement stops you from doing your job or business, it's usually not valid. Imagine a company saying you can't work for anyone else in the same field after you leave – that might be against this rule.

💡 Real Life Example

A and B agree that A will not open a shop in a certain area. This agreement is void because it restricts A's trade.

🛡️ KNOW YOUR RIGHTS
  • You have the right to pursue your profession or business freely.
  • Agreements that unreasonably restrict your trade are usually not enforceable.
Sources & References

📒 Legal text sourced from The Gazette of India & AdvocateKhoj Bare Acts Library

⚖️ Content reviewed by Adv. Shailendra Babbar, Seasoned Advocate, with 31 years of legal practice

📚 Act Reference: Indian Contract Act

Disclaimer: This content is for informational purposes only and does not constitute legal advice. Consult a qualified advocate for specific legal matters.

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