High Court decides not to trim restrictive covenants (Rush Hair Ltd v Hayley Gibson-Forbes, S.J. Forbes Ltd)

Table of contents

• Original news
• What was the background to the case?
• What restrictive covenants were provided?
• What is the key case law on the interpretation of restrictive covenants?
• Assessing reasonableness
• 'Commercially sensible' meaning
• Acts done by a company controlled by the covenantor
• How did these principles apply to the facts of the case?
• Employee Covenant
• Non-compete Covenant

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Article summary

Corporate analysis: In the context of the sale of a hairdressing business, the High Court recently considered the case law dealing with the interpretation and enforceability of restrictive covenants.