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lex_advoc
03-03-2008, 11:22 AM
It is illegal for the employer to force an employee to sign a contract without concurrence of the wills or without meeting of the minds involved.
Assent to the terms of the contract made under duress makes the contract void or voidable.

One important elements of a contract is the Consent of the parties. Consent must be freely given.

Any form of vitiation, duress or undue influence which makes a person assent to the contract without real volition will taint the contract with irregularity and unmistakably has no binding effect.

The five year term of the contract (which prohibits you to start a new business of your own) may be permissible. It may be stipulated into the contract. However, if it was made as a condition for the retention of your employment and refusal to assent thereto would lead for your termination, in that case, it voided the contract.

The latter case is prohibited by law as the same is a form of indirect termination, or it may be argued as a form of duress.

The contract in itself cannot limit your freedom to pursue your dream of starting a business of your own choosing.

If you encountered this kind of situation, do refer your case to an employment lawyer to be enlightened.