Penalty clauses are legal in agreements in India. But, certain penalty clauses which are not in relation to breach of contract are not legal. You can not charge a penalty for omission or comission which does not breach the agreement. Penalty can only be charged for liquidated damages which occur due to a breach of the agreement.
Do you wonder if the Non-Compete agreements are even enforceable in India or not?
Or is it something which we only see and hear on television or web series? In this post we are going to elaborate the benefits of the parties along with the important factors to look out for before you jump into one, and much more.