36. Right of outgoing partner to carry on competing business.
(1) An outgoing partner may carry on a business competing with that of the firm and he may advertise such business, but, subject to contract to the contrary, he may not,-
(a) use the firm name,
(b) represent himself as carrying on the business of the firm, or
(c) solicit the custom of persons who were dealing with the firm before he ceased to be a partner.
Agreements in restraint of trade-
(2) A partner may make an agreement with his partners that on ceasing to be a partner he will not carry on any business similar to that of the firm within a specified period or within a specified local limits; and, notwithstanding anything contained in Section 27 of the Indian Contract Act, 1872, such agreement shall be valid if the restrictions imposed are reasonable.
Study Material
8+ Years of Trust
Law PDFs
Law Tests
Everything
For everyone in law
56 Bare Act PDFs
Beautiful, colorful PDFs to read anywhere
110+ complimentary PDFs
100 Law Notes + Legal Maxims, and more...
₹340
One-time payment · Free updates · Instant access
For those who have read Bare Acts
23 Subject Wise Tests
MCQs from one law subject
10 Mixed Law Tests
MCQs from multiple subjects
₹1200
Online Tests · Offline PDFs · Keep test PDFs forever
Best Value: ₹215 Discount
All Law PDFs worth Rs 340
56 Bare Act PDFs + All complimentary PDFs
All Law Tests worth Rs 1200
33 Tests + 33 Test PDFs
₹1325
Buying separately costs 340 + 1200 = Rs 1540
