Home › CA Foundation › businesslaw › Partnership › Under Section 11(2), a partnership contract may …
Under Section 11(2), a partnership contract may validly provide that a partner shall not carry on any business other than the firm's while he is a partner. This is:
AVoid under Section 27 of the Contract Act
BA valid exception to the rule against agreements in restraint of trade
CEnforceable only after dissolution
DVoidable at the partner's option
Answer & Solution
Correct answer: B. A valid exception to the rule against agreements in restraint of trade
Section 11(2) expressly permits such a restraint notwithstanding Section 27 of the Contract Act, so it is a valid exception to the general bar on agreements in restraint of trade.
Related questions
A car uses 4 litres of petrol for 60 km. Its mileage in km per litre is:A man covers a distance in 6 hours at 40 km per hour. To cover it in 4 hours he must traveA man travels equal distances at 40 km per hour and at 60 km per hour. His average speed iA train 200 m long crosses a 100 m platform at 36 km per hour. It takes:A train 150 m long runs at 54 km per hour. The time it takes to pass a pole is:A car covers 300 km at 50 km per hour. At 75 km per hour the same trip would take:Zaheeda doubles her speed on the same route. The time she takes:A journey takes 120 km at a steady 60 km per hour. The time taken is: