Section 517
Void Contracts
(1) A contract which is not valid according to law
shall be deemed to be a void contract.
(2) The following contracts shall be void:
(a) A contract that restraints anyone from exercising
any profession, trade or business which is not
prohibited by law,
Provided that a contract shall not be
deemed to be made in restraint of any
profession, trade or business in any of the
following circumstances:
(1) Where a contract is concluded between a
buyer and a seller on the sale and purchase
of the goodwill of any trade or business,
the contract restraining the seller from
carrying on similar trade or business under
such goodwill for the time and at the place
specified in such contract,
(2) A contract concluded between the partners
to restrain them from doing the same
profession, trade or business as that of the
partnership firm or any other profession,
trade or business together with other
persons who are competitors of the
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profession, trade or business of the same
nature other than the profession, trade or
business of the partnership firm until the
partnership exists,
(3) A contract concluded between the partners
restraining them from exercising a
profession, trade or business of the
partnership firm for a certain reasonable
period or at a certain place after being
separated from the partnership,
(4) A contract so concluded between a person
and any person, firm, company or body
that the person is restrained from
accepting the service of another person,
firm, company or body who is the
competitor of such other person, firm,
company or body until the person is in the
service of, or for a specified period after
retirement from the service of, such other
person, firm, company or body.
(b) A contract in restraint of a marriage other than
one prohibited by the law,
(c) A contract restraining any one from enjoying the
facilities being enjoyed by the public,
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(d) A contract restraining legal right of any person
from being enforced by a court,
(e) A contract concluded contrary to law or on a
matter prohibited by the law in force,
(f) A contract made for an immoral purpose or
against public order or public interest,
(g) A contract which cannot be performed because
the parties thereto do not exactly ascertain or
know about the matter in relation to which it has
been concluded,
(h) A contract the performance of which is
impossible at the time of its conclusion or a
fictitious contract,
(i) A contract which is vague because of its subject
matter being incapable of giving a reasonable
meaning,
(j) A contract concluded by a person not competent
to make contract,
(k) A contract with an illegal purpose,
(l) A contract concluded by mistake of both parties
as to the essential fact of the contract at the time
of its conclusion.
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(3) A void contract is invalid ab initio and it shall create
neither any legal consequence nor any right and obligation of its
parties.
(4) Even if any part of a contract becomes void, its
remaining parts shall be enforceable according to law.