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Report No. 199

Section 28 of the Indian Contract Act: Ouster of Jurisdiction of Courts to adjudicate.

Section 28 of the Contract Act states that agreements absolutely in restraint of legal proceedings are void. It is in two clauses and contains two exceptions and reads as follows:

"Every agreement

(a) by which any party thereto is restricted absolutely from enforcing his rights 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; or

(b) Which extinguishes the rights of any thereto, or discharges any party thereto from any liability, under or in respect of any contract on the expiry or a specified period so as to restrict any party from enforcing his rights."

Unfair (Procedural and Substantive) Terms in Contract Back

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