Q. Agreement in restraint of trade is void. But if an outgoing partner agrees with the firm that he will not carryon any competing business, such an agreement will be valid if: (Solved)
1. Such restraint is in respect of carrying of any business similar to that of the firm
2. Such agreement is made by the partners beforehand i.e. well in advance
3. Such agreement is made without any specific reference to time period.
4. Such agreement is made without reference to local limits
- a. Such restraint is in respect of carrying of any business similar to that of the firm