28. Agreement in restraint of trade void

Every agreement by which anyone is restrained from exercising a lawful profession, trade, or business of any kind, is to that extend void.

Saving of agreement not to carry on business of which goodwill is sold

Exception 1 — One who sells the goodwill of a business may agree with the buyer to refrain from carrying on a similar business, within specified local limits, so long as the buyer, or any person deriving title to the goodwill from him, carries on a like business therein:

Provided that such limits appear to the court reasonable, regard being had to the nature of the business.

Contracts

Of agreement between partners prior to dissolution

Exception 2 — Partners may, upon or in anticipation of a dissolution of the partnership, agree that some or all of them will not carry on a business similar to that of the partnership within such local limits as are referred to in the last preceding exception.

Or during continuance of partnership

Exception 3 — Partners may agree that someone or all of them will not carry on any business, other than that of the partnership, during the continuance of the partnership.