K agreed to sing at the Star Theatre for a period of three months beginning 1 st January 1996. She further agreed not to sing at any other theatre during this period. Is this contract enforceable against her?
Restraint of trade is considered against public policy and, therefore, is bad in the eyes of the law. Section 27 of the Indian Contract Act declares it void. However, with regard to service agreements, restraints of the nature mentioned in the given problem shall bevalid, if reasonable. The facts of the given problem are based on the case of Lumley v. Wagner in which the Court held this restraint of 3 months to be reasonable and thus enforceable. Thus, K can be restrained from singing elsewhere during the period of 3 months.
Restraint of trade is considered against public policy and, therefore, is bad in the eyes of the law. Section 27 of the Indian Contract Act declares it void. However, with regard to service agreements, restraints of the nature mentioned in the given problem shall bevalid, if reasonable. The facts of the given problem are based on the case of Lumley v. Wagner in which the Court held this restraint of 3 months to be reasonable and thus enforceable. Thus, K can be restrained from singing elsewhere during the period of 3 months.
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