Contract in Restraint of Marriage Void Contract in Restraint of Trade Void Contract in Restraint of Legal Proceedding Void Uncertain Agreement

CONTRACT IN CONTRACT IN CONTRACT IN UNCERTAIN WAGERING
RESTRAINT OF RESTRAINT OF RESTRAINT OF LEGAL AGREEMENT AGRREEMENT

MARRIAGE VOID TRADE VOID PROCEEDDING VOID
26. Agreement in restraint of marriage, void
Every agreement in restraint of the marriage of any person, other than a minor, is void.
 “Every agreement” – it means all agreement that restricts marriage partially or in total will be void.
Answer the following
1. A pay rs 1000 to B if, he will never marry

2. A will pay Rs 1000 to B if he will not marry a hindu
3. A will pay rs 1000 if B marries his daughter
4. A ( father) pays to his daughter( who is a minor) if she will marry only after she attains
majority.
Ans
1. A pay rs 1000 to B if, he will never marry.- VOID ( total restrain)

2. A will pay Rs 1000 to B if he will not marry a hindu- VOID ( partial restrain)
3. A will pay rs 1000 if B marries his daughter- VALID as no marriage restrain rather
promoting marriage.
4. A ( father) pays to his daughter( who is a minor) if she will marry only after she attains
majority- section states that restriction on marriage can be put in case of minor
Case analysis
Suryamurthy v P. Krishna Murthy
Fact- an agreement was made between two co-widows that if any of them remarried, she should forfeit her right to her
share in the deceased husband’s property.
Held- the agreement is not restrain of marriage rather restrain of property.
27. Agreement in restraint of trade, void - Every agreement by which anyone 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 good will is sold - One who sells the goodwill 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 goodwill 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.
Exception 27
STATUTARY EXCEPTION JUDICIAL EXCEPTION
INDIAN CONTRACT ACT, 1872 INDIAN PARTNERSHIP ACT 1932
Section 27, Exception 1 Section 11(2)

 Sale/ Purchase of goodwill- the buyer Section 36(2)
of the goodwill can restrain the seller Section 54
of the goodwill from carrying on the Section 55
like business. all these section deals with restriction's that are applicable
 Restriction is only applicable to similar on partners in a firm during partnership and also when they
nature of business. leave the firm.
 Limits imposed must be reasonable
and local limits.
 Restriction valid only till the time the
buyer is carrying on the business.
JUDICIAL EXCEPTIONS
CONTRACT OF SERVICE
SOLUS AGREEMENT OR TRADE COMBINATION
It means that when a person is during his
EXCLUSIVE DEALING AGREEMENT
term of employment restrictions can be
CASE:- Gujarat bottling company v
imposed upon him that during certain period
coca cola and company
he will not serve any other master or
In this agreement was made
employer.
between the parties that they will
Case Charlesworth v Mac Donald
sell only products of coca cola.
in this case there was a contract between
Held – such trade restrictions can
Charlesworth and Mac Donald that Mac
be imposed.( read further from
Donald will serve as an assistant of
book also)
Charlesworth, a physician and surgeon at
zansibar, as for 3 years and not to practice
there during that period. After one year he
left the Charlesworth and started his own
practice . Charles filled an suit to restrain him
from practice.
Held- contract valid and he can be restrained.
DOCTRINE OF SEVEARABILITY
The word “ to that extend “ in section 27 makes it clear that the entire
contract will not become void rather only the specific clauses which offends
the provision of section 27 will be severed and separated from the rest of the
contract.
28. Agreements in restrain of legal proceedings, void -Every agreement, by which any party thereto is restricted absolutely
from enforcing his rights under or in respect of any contract, by the usual legal proceedings in the ordinary tribunals, or
which limits the time within which he may thus enforce his rights, is void to the extent.
Exception 1 : Saving of contract to refer to arbitration dispute that may arise. This section shall not render illegal contract, by
which two or more persons agree that any dispute which may arise between them in respect of any subject or class of
subject shall be referred to arbitration, and that only and amount awarded in such arbitration shall be recoverable in respect
of the dispute so referred.
Exception 2: Saving of contract to refer question that have already arisen - Nor shall this section render illegal any contract
in writing, by which two or more persons agree to refer to arbitration any question between them which has already arisen,
or affect any provision of any law in force for the time being as to reference to arbitration.
Exceptions
It will be discussed in class note it down from Contract I, Dr. R.K. Bangia(6th ed), pg 242
Invalid restriction
Restriction in filling a suit.
limitation period cannot be extinguished
Limitation period cannot be reduced.
Illustrations
…
Case- Harshad Chiman Modi v DLF Universal ltd
29. Agreements void for uncertainty Agreements, the meaning of which is not certain,
or capable of being made certain, are void.
Not certain/ uncertain- void Certain/Capable of being certain- valid
 Sell 10l of oil  Sell 10L of oil, while the seller only deals
 Sell horse for 100/500 rs with coconut oil
 Sell your house in ramnagar or shamnagar  Sell me the horse for 100 or 500 , which
ever the expert will decide.
 Sell me the house with 3 floors( only
ramnagar is having 3 floors)
A horse is bought from B and A promises to buy second horse if the first horse proves to be
lucky. [Guth V Lynning]
30. Agreements by way of wager, void Agreements by way of wager are void; and no suit
shall be brought for recovering anything alleged to be won on any wager, or entrusted to
any person to abide the result of any game or other uncertain event on which may wager
is made. Exception on favour of certain prizes for horse-racing: This section shall not be
deemed to render unlawful a subscription or contribution, or agreement to subscribe or
contribute, made or entered into for or toward any plate, prize or sum of money, of the
value or amount of five hundred rupees or upwards, to be rewarded to the winner or
winners of any horse-race.
Section 294A of the Indian Penal Code not affected : Nothing in this section shall be
deemed to legalize any transaction connected with horse-racing, to which the provisions
of section 294A of the Indian Penal Code (45 of 1860) apply.

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CONTRACT IN CONTRACT IN CONTRACT IN UNCERTAIN WAGERING

RESTRAINT OF RESTRAINT OF RESTRAINT OF LEGAL AGREEMENT AGRREEMENT

Answer the following

1. A pay rs 1000 to B if, he will never marry

1. A pay rs 1000 to B if, he will never marry.- VOID ( total restrain)

Section 27, Exception 1 Section 11(2)

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