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Section 27 of the Indian Contract Act underscores that agreements restraining trade are void. This provision emphasizes that individuals and companies should not have their freedom of trade limited by any agreements or clauses. The importance of this right has been recognized since 1872 and remains significant following the adoption of the Indian Constitution. Freedom of trade is considered paramount, existing as both a common law and an equitable right, reinforcing that everyone must have the ability to engage freely in trade. Thus, any attempts to restrict this freedom are deemed invalid under the law.
