A sells the goodwill of his business to B and agrees with him to refrain from carrying on a similar business within specified local limits. This contract is

Question

Quizplus · Accepted Answer

This contract is valid because it is a common practice in business transactions for the seller of a business's goodwill to agree not to engage in a similar business within a certain area for a specified period. This is to protect the buyer's newly acquired business interests.

A Sells the Goodwill of His Business to B and Agrees