Section 27 in Jammu and Kashmir Contract Act, Svt. 1977 (1920 A.D.)
27. Agreement is restraint of trade void
Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind is to that extent void.Exception 1. Saving of agreement not to carry on business of which goodwill is sold.One who sells the good-will of a business may agree with the buyer to refrain from carrying on a similar business, within specified local limits, so Long as the buyer, or any person deriving title to the good-will from him, carries on a like business therein:Provided that such limits appear to the Court reasonable, regard being had to the nature of the business.
