Trace Your Case

ISSUE:

Whether the right of first refusal under Clause 31(b) of the permission agreement entered into between the appellant and the respondent is void under Section 27 of the Indian Contract Act, 1872 has been in restraint of trade.

RULE:

Putting a restriction on someone's freedom to enter into a contract is void. The restrictive covenant was negative in nature because it was forcing the respondent to do something.

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