Under Section 27, an agreement in restraint of trade is

Question

Accepted Answer

C. {'text': 'Void to that extent', 'label': 'C'}

1. Section 27 declares agreements in restraint of trade void to the extent of the restraint.
2. This applies to any restraint on exercising a lawful profession, trade or business.
3. The only statutory exception is a restraint arising from the sale of goodwill.
4. Indian law is stricter than English law, which allows reasonable partial restraints.
_Source: Indian Contract Act, 1872 (indiacode.nic.in), S. 27_

Answer

{'text': 'Always enforceable', 'label': 'A'}

Answer

{'text': 'Voidable at the option of the employer', 'label': 'B'}

Answer

{'text': 'Enforceable if signed in the presence of a magistrate', 'label': 'D'}