Correct option is C
An agreement in restraint of trade under Section 27 of the Indian Contract Act, 1872, is void. This Section declares that any agreement that restrains someone from exercising a lawful profession, trade, or business of any kind is void. The rationale is to promote free trade and protect individual freedom to engage in trade and commerce.
Information Booster:
Section 27 embodies the principle that contracts which restrain trade are against public policy because they limit competition and restrict an individual’s right to earn a livelihood. Exceptions are rare and usually involve situations where the restraint is reasonable and necessary to protect the legitimate interests of the parties, such as in the sale of a business with goodwill.
Additional Knowledge:
· Valid: Contracts that involve reasonable restrictions in the context of partnerships or sale of business may be valid, but generally, restraints are void.
· Voidable: Agreements are voidable at the option of one party, usually due to factors like fraud or coercion, not restraint of trade.
· Enforceable: A void agreement cannot be enforced by law, making "enforceable" an incorrect option.
