# The Indian Contract Act, 1872, Section 27: Agreement in restraint of trade, void

- Act: The Indian Contract Act, 1872 (Act 9 of 1872)
- In force from: 1872-09-01
- Ministry: Ministry of Law and Justice
- Source URL: https://indiacode.ecourtsindia.com/contract-act/section/27/

## Text

Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void. Exception 1.Saving of agreement not to carry on business of which good-will is sold.One who sells the good-will of a business may agree with the buyer to refrain from carrying on a similar business, within specified local limits, so long as the buyer, or any person deriving title to the good-will from him, carries on a like business therein, provided that such limits appear to the Court reasonable, regard being had to the nature of the business. 1 * * * * *.

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