Chapter – 3 Void and Voidable Contracts

Section 13 : Void Contracts

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The following contracts shall be void:

(a) A Contract preventing anyone from engaging him/herself in any occupation, profession or trade which is not prohibited by prevailing law.

Provided that a contract shall not be deemed to have been concluded in preventing profession or trade in the following circumstances:

(1) A contract preventing the seller from engaging him/herself in a profession or trade at the time and place as mentioned in the contract concluded between the buyer and the seller on selling and buying of the goodwill of any trade;

(2) A contract concluded among partners to prevent their engagement in any trade or business other than those of the partnership firm, similar to those of the partnership firm or any other trade or business together with other competitors belonging to the same kind of trade or business as long as the partnership continues.

(3) A contract concluded among the partners preventing them from engaging in a trade or business under the partnership firm for the specified time or place after being separated from the partnership;

(4) A contract preventing any individual from receiving the service of any such agency, company, firm, individual or competitor of such agency, company, firm, or individual for the specified period of time after the retirement from service or during the service of such agency, company, firm or individual pursuant to a contract concluded by any individual with any agency, company, firm or individual.

(b) A contract restraining marriages other than those prohibited by the prevailing law.

(c) A contract preventing anyone from enjoying the facilities already being enjoyed by the general public.

(d) A contract seeking to prevent the legal rights of any person from being enforced by any government office or court.

(e) A contract concluded in matters contrary to or prohibited by the prevailing law.

(f) A contract concluded for immoral purposes or against Public morality or public interest.

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

(h) A contract which is considered impossible to fulfil even at the time it is concluded.

(i) A contract which is vague as it does not provide reasonable meaning thereof.

(j) A contract concluded by an incompetent person to conclude such a contract.

(k) A contract concluded with an unlawful consideration or objective.

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Section 13 : Void Contracts

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