Page 25 - 01. Indian Contract Act, 1872

(iv) Restraint of personal liberty

(v) Restrain of trade
Negative stipulation in service agreement – An agreement of service by which a

person bind himself during the term of the agreement not to take services with
anyone else is not in restraint of lawful profession and it is valid

Restraint of personal duties
- Parents are natural guardians

- Any agreement against such right or by which a party deprives himself of the
custody of his child is void

Restraint of Marriage

- Any agreement restraining any person, other than minor not to marry at all or
not to marry any particulars person is void.

Marriage brokerage or Brocage contract
- An agreement to negotiate marriage for reward is void

- If marriage is performed but the money is not paid, it cannot be recovered in
the court

Restrict of personal liberty

- Agreement unduly restricting the personal freedom of a person are void and
illegal.

Restraint of Trade (sec 27)
- Agreement restraining anyone from exercising a lawful profession, trade or

business of any kind, is void
- Both total or partial restraint are covered

- Restraint must be reasonable

- In an agreement having two parts which can be separated, only those
covenants which are in restraint of trade would be void.

- Following agreements are not in restraint of trade:

1. Service agreement by which an employee binds himself, during the term `
of his agreement, not to compete with his employee

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