Under Section 27, every agreement by which any one is restrained from exercising a lawful profession, trade or business is
AVoidable at the restrained party's option
BVoid to that extent, subject to the statutory exception for sale of goodwill of a business
CAlways valid
DValid only with court approval
Answer & Solution
Correct answer: B. Void to that extent, subject to the statutory exception for sale of goodwill of a business
Section 27 broadly prohibits restraint of trade. The only statutory exception is the sale of goodwill (proviso to s27). Indian law is stricter than English common law's 'reasonableness' approach (Niranjan Shankar Golikari and Madhub Chunder are leading interpretations).
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