Commentary

67 Extent of restrictions—enforceability

COMPANIES vol 11 acquisitions, mergers, demergers
| Commentary

67 Extent of restrictions—enforceability

| Commentary

67 Extent of restrictions—enforceability

Restrictions on competition should be no wider than necessary to protect the buyer’s legitimate business interest. In determining the reasonableness of the restraint, the courts will take account of the nature of the restriction, its duration and the area it covers. The burden of proving that the restriction is in the interest of the parties is on the person who seeks to rely on it1. The wider the restriction and the longer its duration, the more difficult it is to justify. A worldwide restriction is likely to be invalid unless it is possible to show that

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