Section 27 of the Act mentions only one exception that attests to the restriction of trade, i.e. the sale of good s or goodie. Another exception is the Partnership Act. Courts find it inappropriate to restrict trade agreements when their application is too vague or too broad. In Hi-Tech Recruitment (Pty) Limited, among others against Nel and Another, the Tribunal stated that “the restriction will be inappropriate if the duration and extent of the area to be imposed are outside the agreement itself and/or if the restriction is broader than necessary.” “Any member of the Community has the right to carry out all transactions or transactions which he chooses in a way that he deems desirable in his own interest, provided that he does nothing illegal: any contract which affects the free exercise of his affairs or activities, by putting him in the work he can do for others, or the agreements he can make with others, is a contract that hinders trade. It is inoperative, unless it is reasonable between the parties and does not harm the public interest. (3) Some agreements are only detrimental to society. You are against public order. Some of these agreements are agreements limiting marital, commercial or judicial procedures. These agreements are expressly nullified in India`s Contracts Act in Sections 26, 27 and 28 respectively. The final question to consider is what are the restrictions on trade doctrine. In Chua Chian Ya v Music – Movements (S) Pte Ltd (4), the Singapore Court of Appeal distinguishes between restrictions on an artist`s ability to earn a living (i.e. by writing or performing music) and restrictions on an artist selling their own interest in their musical compositions.
The Tribunal found that the doctrine of trade restraint applied to the previous deduction, but not to the latter. To the extent that the clause in question concerned the sale of the artist`s intellectual property rights, the Tribunal found that the clause was not a commercial clause. Most employment contracts contain a limitation of the trade clause. Many people consider it to be simply a standard clause, but it can have a serious impact on future employment. Some agreements are unenforceable in court because they are contrary to public policy and the public interest.