| Commentary

229.3 Drafting for reasonableness

| Commentary

229.3 Drafting for reasonableness

The general rule is that covenants in restraint of trade are contrary to public policy and therefore void, unless there are special justifying circumstances. Where a complainant has a genuine business interest to protect, the court will generally hold the clause to be enforceable provided that it is reasonable, that is, it is no more restrictive than it needs be to achieve its objective.

In relation to a non-compete clause, the question of reasonableness will be assessed by reference to the type or types of business it covers, the geographical area of its intended operation and its

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