Which section of the Indian Contract Act pertains to agreements that restrain legal proceedings?

Prepare for the CA Foundation Business Law Exam with our comprehensive quiz. Utilize flashcards and multiple-choice questions, each complete with hints and explanations. Ace your exam confidently!

The correct choice focuses on Section 28 of the Indian Contract Act, which specifically addresses agreements that restrain legal proceedings. This section outlines the enforceability of contracts that attempt to limit a party's ability to pursue legal action, stating that any agreement that restricts a person's right to take legal action in respect of any future disputes is typically void. This principle is crucial because it upholds the right to access legal remedies and helps ensure that parties cannot contractually bind themselves to forgo legal recourse.

In the context of the other sections, Section 26 discusses the notion of agreements in restraint of marriage, Section 30 covers agreements that restrain trade, and Section 31 relates to contingent contracts. While these sections address various aspects of contractual agreements, none of them directly tackle the issue of restraining legal proceedings the way Section 28 does, making it essential for understanding the limitations on the enforceability of contracts concerning legal recourse.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy