Page 26 - 01. Indian Contract Act, 1872

2. Agreement by a manufacture to sell during a certain period his entire

production to a wholesale merchant
3 Agreement among the sellers of a particular commodity not to sell the

commodity for less than a fixed price.

This rule subject to following exceptions:

1. If a person sells the goodwill of a business and agree the buyer to refrain from
carrying any similar business within specific reasonable local limits, it is valid

agreement.

2. If an outgoing partner makes an agreement with the continuing partners for
not to carry on any similar business within a specified period or within specific

local limits, is a valid agreement provided reasonable restriction are imposed.
3. Contracts between partners not requiring any partner to carry on any

business other than that of the firm while he is a partner.

Trade combinations: An agreement the object of which is to regulate

business and not to restrain it is valid. Thus, an agreement is the nature of
business combination between trader or manufacturing like not to sell their

goods bellows as certain price is perfect y valid.

Negative stipulations in service agreement : it refers to an agreement of
service by which a person binds himself during the term of the agreement not

to take service with anyone else such an agreement is valid.

Agreement Expressly Declared Void

Certain agreements have been expressly declared as void by contract Act.

(i) Consideration unlawful in part
(ii) Agreement – meaning of which is uncertain

(iii) Wagering Agreement

26