LEGAL PRINCIPLE : Every agreement, by which any party is restricted absolutely from enforcing his rights in respect of any contract, by the usual legal proceedings in the ordinary tribunals, is void to that extent. FACTUAL SITUATION : Feroz and Pintoentered into an agreement for rendering certain services. As per the prevailing law, the agreement may be enforced either at Jaipur or Udaipur. The agreement itself, however, specifies that upon breach, the parties can only approach courts at Jaipur.Feroz breaches the contract and Pinto, being a resident of Udaipur, would like to sue him in Udaipur. He challenged the validity of the clause. DECISION :

Question

LEGAL PRINCIPLE : Every agreement, by which any party is restricted absolutely from enforcing his rights in respect of any contract, by the usual legal proceedings in the ordinary tribunals, is void to that extent.   FACTUAL SITUATION : Feroz and Pintoentered into an agreement for rendering certain services. As per the prevailing law, the agreement may be enforced either at Jaipur or Udaipur. The agreement itself, however, specifies that upon breach, the parties can only approach courts at Jaipur.Feroz breaches the contract and Pinto, being a resident of Udaipur, would like to sue him in Udaipur. He challenged the validity of the clause.   DECISION :

Examsnet · Accepted Answer

Correct Answer is :  Pinto will fail as the contract does not restrain him from instituting legal proceedings in Jaipur.

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