Commentary

121.2 General principles relating to restrictive covenants

BUSINESSES vol 4(2) start-up, sale and purchase
| Commentary

121.2 General principles relating to restrictive covenants

| Commentary

121.2 General principles relating to restrictive covenants

These restrictions will obviously be in restraint of trade and thus unenforceable unless they protect a legitimate business interest and can be shown to be reasonable in the interests of the parties and in the public interest1.

It has come to be accepted that certain types of contract which attempt to restrict a party’s freedom to trade will not be treated as being invalid on grounds of public policy, provided that the degree of interference does not exceed the accepted standard. One such type is the employment contract which seeks to prevent the employee

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