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Question

PRINCIPLE: An agreement is void to the extent that it restricts absolutely, a party from enforcing his contractual rights by usual proceedings in any ordinary event.
FACTS: A and B entered into a transaction in Delhi for sale of goods based in Delhi. The contract stated that in case of a dispute, only civil courts in Chennai would have jurisdiction. Neither A nor B reside or carried on business in Chennai.

A
The contract is valid since it is still on Indian court that has jurisdication
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B
The contract is void since it ousts the jurisdiction of the competent court
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C
The contract is void since the consent of the court is required before entering into such a contract
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D
The contract is valid since Chennai courts have expertise with respect to contractual matters
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Solution

The correct option is A The contract is valid since it is still on Indian court that has jurisdication
The contract is valid since both the parties can enforce their contractual rights by usual proceedings. This is because even though the jurisdiction is under Chennai court it is still under Indian courts.

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