Under an agreement, A sells to B his skin bleaching products business “Intimate Whitener” and the goodwill of the business with the condition that A will not carry on such similar business throughout India so long as B carries it on anywhere in India. The agreement records that this condition is reasonable and that no court will have jurisdiction to examine this condition. The agreement is
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void
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voidable
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voidable in part
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void in part
A
Correct answer
Explanation
In an agreement, A sells to B his skin bleaching products business “Intimate Whitener” and the goodwill of the business with the condition that A will not carry on such similar business throughout India so long as B carries it on anywhere in India. The agreement records that this condition is reasonable and that no court will have jurisdiction to examine this condition. The agreement is void as it violating the article 301 of the Constitution. B cannot impose restriction on A to carry on business throught India. A specified area or time can be the criteria of restriction in restraint of trade.