| Commentary

83 Restrictive covenants

| Commentary

83 Restrictive covenants

When a partner retires, the remaining partners will want to protect the goodwill of the partnership business by preventing him from being involved in any activities which compete with that business and from poaching customers or staff. Any clause in the partnership agreement to this effect however will be subject to the usual common law rules on restraint of trade and will therefore need to be very carefully drafted.

Case law establishes that any clause which restricts the outgoing partner’s freedom to engage in future business activities is prima facie void unless the remaining partners can show that

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