Restriction on sub contractor

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This discussion addresses the legality of a company implementing a 5-year non-compete agreement with its subcontractors. The agreement aims to prevent subcontractors from doing business directly or indirectly with the company's clients and includes a penalty for breaches. The consensus is that such agreements are legally valid and are recognised as non-compete clauses, which can include associated fees.

Deepak Rawat

Deepak Rawat (Querist)
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23 July 2021 Good Morning Member.
Please give legal advice on below mentioned case.

Company A want to make legal agreement with its Sub contractor for not to doing business with their client directly or indirectly for next 5 years. In the breach of the above said agreement, contractor will be liable to pay a fix amount as penalty.

Here, I want to know can a company make such agreement or this agreement will be void on the ground abstain from doing business.

Please give your valuable legal advice.

Thanks