validity of contract term

Querist : Anonymous (Querist) 18 June 2010 This query is : Resolved
Dear Experts,

A contract which has a restrictive condition not to carry on similar practice for the contract period and one year thereafter will be enforceable if the contract term is already expired and the person commenced practice after the contract term but within the one year restriction imposed in the contract document. Will that one year condition imposed and the breach of that can be enforceable in law ?

Thank you for valuable advise.

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V.T.Venkataram (Expert) 18 June 2010
If the condition imposed in the contract is breached,the other party has legal right to apply for injunction and also claim punitive damages.

Querist : Anonymous (Querist) 18 June 2010
Further clarification is will that restrictive term in the contract not prohibited term under Section 27 of the contract act, making that term as void ? The term imposing restriction is from carrying on professional practice even one year after the contract period. Pls. advise.

Guest (Expert) 20 June 2010
Any reasonable restriction cannot be held as Void. The other party may prove that they have divulged 'technical knowledge/customers base' etc., hence, they have placed such a restriction.

Further, the party has signed the contract accepting the said term/clause. Hence, taking the defense of 'void' agreement may not sustain.

Querist : Anonymous (Querist) 21 June 2010
Any case laws, citation available in this regards ? If so, please provide.

Thanks !

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