s.
no sec E
1. 27 Agreement in restraint of trade is
void
2. 28 Agreements in restraint of legal
proceedings is void:
a) absolute restriction: when an
agreement restricts a person from
enforcing their rights
- right gets cancelled in this case
b) Partial restraint: a contract that
imposes a smaller time limit
mentioned in Limitation act is
void. (restrict the time within
which an action has to be
performed)
-the right exists, but there is a
limitation on time, and that time
period is less than mentioned in
Limitation act or any law
3. 29 Agreements void for uncertainty:
It is generally read with sec 93 of
the Indian evidence act.
-the court will court will not admit
evidence that will make an
uncertain thing certain
- Agreements, the meaning of
Exception caselaw
1.Saving of agreement not to Norden felt vs Norden felt:(it
carry business of which good is the example of the
will is sold exception 1)
(i.e., in case of sale of
goodwill there can be
reasonable restrictions)
2. Sole dealing agreement- Gujrat bottling company v.
sell only one product and not Coca-Cola (example of
sell any substitutes of it, e.g., exception 2)
Mc Donald’s can only sell
coke and not any of its
substitutes such as Coca Cola
etc.
SB phraser vs Bombay ices
3. Trade combinations- is an manufacturing company
agreement between group of (example for exceptionn 3-
manufacturers or business trade combinations)
owners come together to
organize and regulate trade Charlesworth vs MacDonald
4. Restrictions upon Brahmaputra t company ltd
employees (only during the vs E.Scarth (example on
employment) restrictions after
employment)
1) Saving of contract to refer a)cogla vs coringa oil
to arbitration dispute that may company ltd(example for
arise- if there is a arbitration absolute restriction and
clause-the dispute has not exception 1)
risen, but for future disputes
b) ABC Laminart v. AP
2) Saving of contract to refer agencies (absolute restraint)
questions that have already
arisen.
3) Saving of a guarantee
agreement of a bank or a
financial institution- if less
than one year period is
provided
Damodar Tukaram v. State of
Bombay (example for sec 29)
which is not certain, or capable
of being made certain, are void.
Illustration-e is important