Question

Solve.
X employed Y. The terms of service agreement are
(a) The employee has to serve the organisation for 5 years.
(b) The employee shall not accept any other similar engagement during the term of agreement.
(c) The employee shall not accept similar engagement after the termination of services.
(d) The employee shall not compete with his employer after the termination of services.
State the legal position of the terms of service agreement.

Answer 1

Solution: Section to which the given problem relates: Section 27.
Decision: First two terms (a) and (b) are not in restraint of trade and hence valid. Last terms (c) and (d), are restraint of trade and hence void.