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प्रश्न
Legal Principle: Agreements in restraint of trade are void and unenforceable.
Fact Situation: Manu has been working as a blacksmith in his village for many decades. Somu has been undergoing training with him for the past three years. After his training is over, Somu enters into an agreement with Manu that he will not start a competing business in the same village while Manu is alive.
Which of the following statements is the most appropriate in relation to the legal principle stated above?
विकल्प
This agreement is void and unenforceable since it is a restraint on trade.
This agreement is valid and enforceable since Manu is Somu’s teacher.
This agreement is valid but not enforceable after Manu’s death.
This agreement is valid and enforceable since it is to protect Manu’s interest in consideration for teaching Somu to be a blacksmith.
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उत्तर
This agreement is void and unenforceable since it is a restraint on trade.
Explanation:
Under section 27 of the Indian contract Act, 1872 agreements in restraint of trade are void. It stipulates that an agreement, which restrains anyone from carrying on a lawful profession, trade, or business, is void to that extent. In the given case Manu is restraining Somu to carry on a lawful profession thus the agreement between them is void. Hence option (a) is the most appropriate.
APPEARS IN
संबंधित प्रश्न
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A and B Hindu couples were married to each other. Owing to differences between them they decided to get divorced. They entered into a contract laying down the conditions that both parties had to adhere to. One of the terms of the contract was that their children would not be entitled to claim the ancestral property of A, the husband.
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PRINCIPLE Generally, an agreement without consideration is not valid. Therefore in order to make a valid agreement some consideration which may have some value in the eyes of law, is essentially required.
FACTS William has an old car of which he makes seldom uses. He voluntarily enters into an agreement with Smith to sell this car for rupees ten thousand. Thereafter one Anson approaches William and offers to buy that car for rupees one lac as the car was one which Anson has been searching for long. Now William wants to cancel his agreement with Smith and refuses to deliver the car to him saying that consideration (price) for the car promised by Smith is negligible and, therefore, agreement with him cannot be said to be the valid one.
In the year 2002, the Competition Act was enacted replacing
The following question consists of two statements, one labeled as ‘Assertion’ (A) and other as ‘Reason’ (R). You are to examine these two statements carefully and select the correct answer.
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Reason (R): Every illegal contract is void.
The question consists of legal propositions/principles (hereinafter referred to as 'principle') and facts. These principles have to be applied to the given facts to arrive at the most reasonable conclusion. Such principles may or may not be true in the real sense, yet you have to conclusively assume them to be true. In other words, in answering the following question, you must not rely on any principles except the principle that is given hereinbelow for the question. Further, you must not assume any facts other than those stated in the question. The objective of this section is to test your interest in the study of law, research aptitude, and problem-solving ability.
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DECISION:
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Decision
