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Calculating Gaining Ratio

Solve.X sold ...

Question

Solve.
X sold his business including good will to Y for? 500,000 by an agreement The agreement provided that X shall not engage himself in the similar business in the whole of India for the next 10 years. X started the same business in the same city after month. State the legal position.

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Solution

Solution: Section to which the given problem relates: Section 27.
Decision: Y cannot take any legal action against X.
Reason: The agreement between X and Y was in restraint of trade because the limits were unreasonable.

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Q. 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.

After the agreement is stated to commence a small scale business, the agreement is sent to the _____ for approval?

Q. 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 sells goodwill of his business to B, and agrees with him to refrain from carrying on a similar business within specified local limits.
Issue: Is the agreement valid?

Q. _________ is one who becomes partner by an agreement and is actively engaged in the business of the firm.

Q. X and Y are partners. They decided to dissolve their firm. After dissolution they sold the goodwill of firm to W. State the legal position of the following acts:
Case (a): Can X or Y carry on a business competing with that of W?
Case (b): Can X or Y advertise: such business?
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