Question

Miss Suzain a film actress agreed to work exclusively for a period of two years for a film production company however during the said period she enters into a contract to work for another film producer discuss rights of the aggrieved film production company under the Indian Contract act 1872

Answer 1

The rights that the aggrieved film production company under the Indian Contract act 1872 have is that: agreements that restrict trade are deemed to be against public policy and are therefore invalid, under Section 27 of the Indian Contract Act 1872.

Given Situation: Miss Suzain a film actress agreed to work exclusively for a period of two years for a film production company however during the said period she enters into a contract to work for another film producer.

• According to Section 27 of the Indian Contract Act 1872, agreements that restrict trade are deemed to be against public policy and are therefore invalid.
• However, restrictions of the kind indicated in the provided situation are acceptable under service agreements if they are reasonable. The circumstances of the aforementioned issue are based on the Lumley v. Warner case.
• Since Miss Suzain has agreed to work exclusively for the film production company for a period of two years, the offended film production firm may prevent her from signing a contract with and working for another film producer. Warrior Bros. v. Nelson was another case of similar circumstances (1937).

Therefore, the rights that the aggrieved film production company under the Indian Contract act 1872 have is that, according to Section 27 of the Indian Contract Act 1872, agreements that restrict trade are deemed to be against public policy and are therefore invalid.

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