Q&As

In a business-to-consumer supply of services contract, can the supplier enforce a provision against the consumer which provides that the consumer cannot directly engage a member of staff employed by the supplier for 12 months following termination by the consumer on three months' notice?

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Published on LexisPSL on 27/04/2016

The following Commercial Q&A provides comprehensive and up to date legal information covering:

  • In a business-to-consumer supply of services contract, can the supplier enforce a provision against the consumer which provides that the consumer cannot directly engage a member of staff employed by the supplier for 12 months following termination by the consumer on three months' notice?

It is a basic principle of common law that an individual should be free to follow his trade or calling when, where and in what manner he wishes. However, it is also axiomatic at common law that there should be freedom of contract and that bargains once made should be kept. A contract which limits the freedom to trade can therefore be enforced if it protects a legitimate business interest and is reasonable in the interests of the parties and in the public interest.

Lexis®PSL Employment deals largely with the more usual application of the restraint of trade doctrine to post-termination restrictions in the contract of employment between employer and employee—see, for

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