restraint of trade

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Restraints of trade is a common law doctrine relating to the enforceability of contractual restrictions on freedom to conduct business. It is a precursor of modern competition law. In an old leading case of Mitchel v Reynolds (1711) Lord Smith LC said,
it is the privilege of a trader in a free country, in all matters not contrary to law, to regulate his own mode of carrying it on according to his own discretion and choice. If the law has regulated or restrained his mode of doing this, the law must be obeyed. But no power short of the general law ought to restrain his free discretion.
A contractual undertaking not to trade is void and unenforceable against the promisor as contrary to the public policy of promoting trade, unless the restraint of trade is reasonable to protect the interest of the purchaser of a business. Restraints of trade can also appear in post-termination restrictive covenants in employment contracts.

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    My daughter worked as a Contractor for a Company in the Fitness Industry. In September, she and another contractor had an idea to start their own part time business for fitness in early mornings/ late evenings outside the workplace. They have a clause: Exclusivity - The parties agreed that...
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    NSW Restraint of Trade Terms - Can I Work for Competitor?

    I was offered a job by a competitor. The restraint of trade on my contract seems excessive. Plus they have forgotten to state how many months it's enforced. Can I work for them or not?
  3. R

    NSW Restraint of Trade on Employment Contract?

    I used to work for Company A as a contractor for Client 1. I have been recruited by Company B as all the work for Client 1 went to Company B (no change in my job profile). For me it's only a change of employer. Before joining company B, I refused to sign the offer stating that It will not allow...
  4. S

    VIC Post-contract restraint period - does it matter when business was previously conducted?

    Hi, I currently working for a IT consulting firm and I'm on the verge of getting an offer from one of my current employer's clients. My employment contract has a cascading restraint clause (all the way down to 3 months and the state of Victoria) that prohibits me from seeking employment from...
  5. M

    ACT Withholding pay for damages & restraint of trade

    Hi, pretty stressed out right now. Situation is this. My wife was employed as a contractor in a beauty/massage business. One arvo she'd put a bit too much in a washing machine the business uses and being honest about things, let the boss know via text [restrospectivley not a smart thing to do]...
  6. M

    VIC Post contract restraint period, clients soliciting product from me

    I am currently held to a 9 month post contract obligation which reads as such: Accordingly, you agree that you will not directly or indirectly, on your own account or for or on the behalf of any person or entity, within the Restraint Period: a) canvass, solicit or endeavour to entice away from...
  7. Peter Kelley

    ACT Clarification of Restraint of Trade in Employment Contract?

    I am currently looking at an employment contract or agreement and in the restraint section (and aren't there issues with restraint of trade clauses anyway?) is the following definition: "Client means any person, firm or company who is client or customer of the Company and with whom or which you...
  8. S

    NSW Restraint of Trade - Chances of Company Suing Me?

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  9. F

    NSW Restraint of Trade on Employment Contract - Enforceable?

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  10. Samual

    NSW Hired as Contractor for Employer - Can Agency Sue Me?

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