Contract Act 1950 Section 28

Non compete clauses in employment agreements are not enforceable in malaysia due to section 28 of the contracts act 1950. This is because section 28 of the contracts act 1950 prohibits any agreement which restrains a person from exercising a lawful profession trade or business of any kind. Any agreement where anyone is restrained from practicing a lawful profession trade or business of any kind is to that extent void.

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According to section 28 of the contract act 1950 agreement in restraint of trade void.

Contract act 1950 section 28. Act 136 contracts act 1950 incorporating all amendments up to 1 january 2006 published by. You may find the following information useful. Consequences of rescission of voidable contract section. Section 28 provides that every agreement by which anyone is restrained from exercising a lawful profession trade or business of any kind is void.

Upon the dissolution of a partnership. An act relating to contracts. Or b which extinguishes the rights of any party thereto or discharges. Cite contracts act 1950 section 28 there are several styles of referencing and the format for citation of legislation depends on the type of referencing style used.

The intention of section 28 is to promote free trade and free movement of labour. As far as it can go except in the specified exceptions. Section 28 of the ca 1950 is general in its terms and unequivocally declares all agreements in restraint of trade void pro tanto i e. Agreement in restraint of trade void.

Under the exceptions to s28 of the ca 1950 an agreement in restraint of trade could only be imposed. Section 28 of the indian contract act 1872 states that every agreement a by which any party thereto is restricted absolutely from enforcing his rights under or in respect of any contract by the usual legal proceedings in the ordinary tribunals or which limits the time within which he may thus enforce his rights. Section 28 in the contract labour regulation and abolition act 1970. Appoint such persons as it thinks fit to be inspectors for the purposes of this act and define the local limits within which they shall exercise their powers under this act.

This section shall not render illegal a contract by which two or more persons agree that any dispute which may arise between them in respect of any subject or class of subjects shall be referred to arbitration and that only the amount awarded in such arbitration shall be recoverable in respect of the dispute so referred. Saving of contract to refer to arbitration dispute that may arise. Malaysian courts have interpreted section 28 to mean that where the non. Legislation from this website is not a copy of the gazette printed by the government printer percetakan nasional malaysia berhad for the purposes of section 61 of the interpretation acts 1948 and 1967 act 388 and does not constitute prima facie evidence of the contents of the gazette by virtue of the section.