Legal Question in Business Law in India
Releif against passing off
I have several business proposal from different people having similar nature of trade and one of them is asking to put a term in the written agreement that I will not engage my self with other companys carrying similar business,will such term in the agreement be legally valid and binding on me?
4 Answers from Attorneys
Re: Releif against passing off
Sir
To filter the validty of the contract, the recitials of the contract has to be perused. But summarily it could be said that such a clause is valid and it shall be binding uptill the contract between u and other person subsists.
Re: Releif against passing off
The agreement as such is however legally invalid/void as per partnership Act,but in case you are working under him as works contractor as per the rules of thier company you may be asked not to take up any other contracts in similar works.
Re: Releif against passing off
Agreements in restrain of trade are generally not binding forever and can be revoked/terminated in appropriate cases. However, such agreement for a specific purpose & specified period are enforceable with damages in default.
Re: Releif against passing off
This is a pertinent question. Eventhough, the same restricts your right, which is guaranteed under the Constitution of India, the same cannot be termed as restrictive, as it may fall under the category of reasonable restrictions and also it depends on the nature of contract and the clauses incorporated therein. However, the contractual terms has to be looked into in detail in order to arrive at a more conclusive opinion.
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