Illegal clauses in NDA
3 years ago
I have already served full notice period; the resignation was accepted and last working day has been communicated. Now, the company wants me to sign an NDA and fill up feedback form in order to issue the relieving letter. Problems:
1. I was never informed formally that I have to sign the NDA.
2. The NDA contains clauses that interfere with personal freedom and freedom of speech. Example: I will never talk to any of the company's current employee again.
3. The company is also threatening me of dire consequences if I don't give positive feedback before my exit from the company.
Any advice / suggestion will be greatly appreciated. Thanks.
A.Dear Sir,
Section 27 in The Indian Contract Act, 1872
27. Agreement in restraint of trade, void.—Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void. —Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void." Exception 1.—Saving of agreement not to carry on business of which goodwill is sold.—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. 16 [***]
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Section 27 in The Indian Contract Act, 1872
27. Agreement in restraint of trade, void.—Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void. —Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void." Exception 1.—Saving of agreement not to carry on business of which goodwill is sold.—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. 16 [***]
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