This section provides that any agreement that prevents a person from exercising his or her right to engage in a profession or trade is considered to be a void agreement. Commercial and commercial freedom is a fundamental right provided for in the Constitution under Article 19(1). Thus, the contract can be frustrated in two types of situations: – Therefore, if the clause of a contract states that no appeal can be brought at the expiration of a period of two years, it is declared as a void agreement. With the amendment of the section in 1997, it is now stated that any clause reducing the normal limitation period is cancelled in this respect. 10. Contestable contract 2 (i): a contract is a contestable contract if it is legally applicable at the choice of one or more of the parties (i.e. the injured party) and is not applicable by law to the choice of the other party. The working philosophy behind this section is that, if the illegal clause can be dissociated from the contract, the entire contract is not considered void, but only the illegal part is considered void and the rest of the contract is considered valid, but if the illegal clause cannot be dissociated from the legal part, the entire contract is considered illegal.  The consideration or the object of an agreement is legitimate, except and until it is: Article 27 is in principle based on public policy and applies to varying degrees.
In the case of Brahmaputra Tea Co Ltd v. Scarth, the court decided that any restriction that would bind a person was not invalid and fell within the exceptions in section 27. These legal and judicial exceptions are discussed below.