10 WHAT IS A “VOID CONTRACT”? Article 2, point (j) A contract that is no longer enforceable by law expires when it is no longer enforceable. 7 3. ACCORD IN RESTRAINT OF TRADEAn agreement to deter a person from practising a profession, a legitimate professional or commercial activity, is not valid in this regard (section 27). All trade policy agreements, whether general or partial, qualified or unqualified, are null and void in accordance with the provisions of Section 27. EXCEPTIONS A) Legal exemptions (i) sale of goodysses [see 27]: In the event of a sale of a good re-seller, the seller may agree not to operate similar transactions within certain local limits, provided that the buyer continues to do similar transactions there, provided such restrictions are deemed appropriate to the jurisdiction. (ii) According to the Partnership Act 1932: There are 4 exceptions: (a) the partner`s competing activity: a partner in a company can prevent himself from carrying out a similar operation as long as he remains a partner. b) Outgoing partner rights: a partner may agree with its partners that once the partnership is completed, it will not carry out a similar transaction within a specified time frame or within certain local limits. c) Similar partner operations in the event of dissolution: partners may agree, in anticipation of the dissolution of the company, that some of them cannot perform similar transactions within a specified time frame or within local limits. (d) Trade Restriction Agreement: a partner may enter into an agreement with the buyer when he sells value, so that that partner does not, within a time frame or within local limits, perform transactions similar to those of the company. 8 B) Exemptions under the Common Lawi) Service agreements: during employment, service contracts often contain a clause prohibiting the worker from working in another location for the duration of the contract.
Any reluctance towards a worker not to engage in a similar activity or to accept a similar undertaking after the termination of his activity is a nullity. (ii) Commercial combinations: it is not illegal to enter into an agreement between different companies in the context of a commercial grouping, in order to maintain a price level and avoid under-sales. (iii) Agreement limiting criminal history (p. 28): any agreement preventing a party from fully asserting its contractual rights through ordinary proceedings or limiting the time within which it can assert its rights is null and void in this regard. Exceptions to this rule are: (a) An agreement to refer all future contract disputes to arbitration. b) An agreement to refer to arbitration all outstanding disputes concerning a contract. (c) an agreement that limits the right of one of the parties to sue in a particular court. 15 Suite: -Interest rate agreements that involve illegal gambling, betting or lotteries – Agreements that have a negative effect on marriage A contract may also be cancelled due to the impossibility of its performance.