Section 517: Void contracts

1) A contract which is not valid according to law shall be deemed to be a void contract.

2) The following contracts shall be void:

(a) A contract that restrains anyone from exercising any profession, trade, or business which is not prohibited by law,

Provided that a contract shall not be deemed to be made in restraint of any profession, trade, or business in any of the following circumstances:

(1) Where a contract is concluded between a buyer and a seller on the sale and purchase of the goodwill of any trade or business, the contract restraining the seller from carrying on similar trade or business under such goodwill for the time and at the place specified in such contract,

(2) A contract concluded between the partners to restrain them from doing the same profession, trade, or business as that of the partnership firm or any other profession, trade, or business together with other persons who are competitors of the profession, trade, or business of the same nature other than the profession, trade, or business of the partnership firm until the partnership exists,

(3) A contract concluded between the partners restraining them from exercising a profession, trade, or business of the partnership firm for a certain reasonable period or at a certain place after being separated from the partnership,

(4) A contract so concluded between a person and any person, firm, company or body that the person is restrained from accepting the service of another person, firm, company or body who is the competitor of such other person, firm, company or body until the person is in the service of, or for a specified period after retirement from the service of, such other person, firm, company or body.

(b) A contract in restraint of a marriage other than one prohibited by the law,

(c) A contract restraining anyone from enjoying the facilities being enjoyed by the public,

(d)  A contract restraining the legal right of any person from being enforced by a court,

(e) A contract concluded contrary to law or on a matter prohibited by the law in force,

(f) A contract made for an immoral purpose or against public order or public interest,

(g) A contract which cannot be performed because the parties thereto do not exactly ascertain or know about the matter in relation to which it has been concluded,

(h) A contract the performance of which is impossible at the time of its conclusion or a fictitious contract,

(i) A contract which is vague because of its subject matter being incapable of giving a reasonable meaning,

(j) A contract concluded by a person not competent to make a contract,

(k) A contract with an illegal purpose,

(l) A contract concluded by mistake of both parties as to the essential fact of the contract at the time of its conclusion.

3) A void contract is invalid ab initio, and it shall create neither any legal consequence nor any right and obligation of its parties.

4) Even if any part of a contract becomes void, its remaining parts shall be enforceable according to law.