Section 27:
Agreement in restraint of trade, void.
Every agreement by which any one is restrained from
exercising a lawful profession, trade or business of any kind, is to that extent void.
Exception 1.Saving of agreement not to carry on business of which good-will is sold.One
who sells the good-will of a business may agree with the buyer to refrain from carrying on a similar
business, within specified local limits, so long as the buyer, or any person deriving title to the good-will
from him, carries on a like business therein, provided that such limits appear to the Court reasonable,
regard being had to the nature of the business.
1
* * * * *.
Notes:
1. Exceptions 2 and 3 rep. by Act 9 of 1932, s. 73 and the Second Schedule.