Chapter V
INCOMING AND OUTGOING PARTNERS
Agreements in restraint of trade
(2) A partner may make an agreement with his partners that on ceasing to be a partner he will not carry on any business similar to that of the firm within a specified period or within specified local limits; and, notwithstanding anything contained in section 27 of the
Contract Act, 1872, such agreement shall be valid if the restrictions imposed are reasonable.
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Ministry of Law, Justice and Parliamentary Affairs
