Question

Legal Principle: Every agreement by which anyone is restrained from exercising a lawful profession, trade or business of any kind, to that extent is void.

Factual Situation: A agreed to become assistant for three years to B who was a doctor practicing at Zanzibar. It was agreed that during the term of the agreement, A was not to practice on his own account in Zanzibar. At the end of one year, A ceased to act as B's assistant and began to practice on his own account.
Issue: Can A be restrained?

• A. The agreement was valid and A could be restrained by an injunction from doing so.
• B. A cannot be restrained.
• C. Neither (a) nor (b)
• D. Both (a) and (b)
  

Answer 1

Answer: (A)

The agreement was valid and A could be restrained by an injunction from doing so.

An agreement of service through which a person

binds himself throughout the term of the agreement not to take service

with anyone else or, directly or indirectly, take part in or promote or

aid any business in direct competition with that of his employer is valid. Hence, from the given example it can be said that, the agreement was valid and A could be restrained through an injunction from doing so,