Question
In some types of business, a restraining clause is added to the sale contract if the business is sold. The seller is then not allowed to sell the same products. What is the Shariah's view regarding the restraint clause?
Answer
The 'restraint clause' is baatil. It has no validity in Islam. It is not permissible. According to the Shariah you are free to operate a similar new business. The purchaser of your earlier business has no right to restrain you.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 25 No 06
- PDF page
- 5
Appears under WIDESPREAD VIOLENCE (approximate).