Legal Principle: A partner may make an agreement with his partners that on ceasing to be a partner he will not carry on any business similar to that of the firm within a specified period or within specified local limits; and such agreement shall be valid if the restrictions imposed are reasonable.
Factual Situation: Mukesh, Ramesh and Mahesh are partners of an IT firm in Bengaluru. Due to personal reasons Mahesh wants to leave the partnership and move to Bhopal. The other partners did not want him to leave without signing an agreement by virtue of which he cannot work in an IT related company or job till his death. Wanting to be rid of the matter quickly, Mahesh signed the agreement.
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