restraint of trade

Australia's #1 for Law
Join 150,000 Australians every month. Ask a question, respond to a question and better understand the law today!
FREE - Join Now
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.

View More On Wikipedia.org
Recent contents
  1. F

    NSW Restraint of Trade on Employment Contract - Enforceable?

    My wife is a massage therapist and she recently started a new job that asked a ridiculous employment contract stating if she left she could not work at another massage business within 10klms for one year after ceasing employment. She is hardly going to reveal any trade secrets by working...
  2. Samual

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

    Hi Guys, Can someone help me on the situation below please? I work for employer S via recruitment agency L. As per the contract between S & L, S if free to hire me directly, however, my employment contract states the non-engagement or restraint of trade policy as follows. "The Casual Employee...
  3. O

    WA Will Restraint of Trade Prevent Me from Finding Employment?

    Hi, I'm a full time employee of a contracting firm and contracted to a mining firm supervising their outload operations. Recently, the mining firm offered a permenant position directly with them. Immediately knowing this, my employer requested to sign a new employment contract with retraint of...
  4. B

    WA Will Restraint of Trade Apply Upon Termination of Contract?

    I currently subcontract, set up as a business partnership, to person 'Y`who has a contract with business `X'. Business X has decided to terminate the contract with person Y and hire full time employees. They have since contacted me and offered to hire me as a full time employee. My questions...
    • Boomer
    • Thread
    • business partnership employment contract restraint of trade
    • Replies: 2
    • Forum: Employment Law Forum
  5. D

    SA Reasonable Time for Restraint of Trade?

    If I have signed a contract for 12 months. Is a 6-month restraint of trade reasonable? If I return to the same company for a specified period of not more than 6 months, what is a reasonable time period to negotiate Restraint of Trade?
  6. L

    QLD Best Way to Handle VCAT Case with Employer?

    Hi All, I used to work as a Finacial Advisor on a contractor/ Sub Authorised Rep basis for a company here in QLD. I have since resigned, the Finacial planning Licensee and the Business owner failed to provide me with an Employment contract or a Sub Ar agreement which usually is provided by a...
    • Luwis
    • Thread
    • employment contract financial advisor restraint of trade vcat
    • Replies: 3
    • Forum: Employment Law Forum
  7. S

    VIC Company in Voluntary Administration - What are My Rights?

    Hi, I am in a bit of dilemma with regards to my current situation with my agency who has assigned me to perform contractual work with a client. I am engaged as a contractor with the agency, and they have assigned me to a client with whom I have been working with for the last 2 years. I have...
  8. S

    NSW Can I Join Client's Company as a Contractor?

    Hi, I was an Indian employee for Company A and as part of my employment letter, I signed a clause that doesn't allow me to work with a client/competitor/supplier for a year. I travelled to the Client Location Company B on a work permit. My deputation letter only stated a restraint of trade...
  9. O

    QLD Unreasonable Restraint of Trade Clause?

    I have just quit my job and it says that I am restrained from working in my current field within a 50KM radius of my current employer's business and any of their retail stores across Australia for 6 months. Is the restraint of trade unreasonable under employment law? And the fact that I am not a...
  10. L

    QLD Restraint of Trade in New Contract?

    I have been working as a Sub Authorised Representative on a contract basis as a Financial advisor and have just resigned from the company and the licensee, however, my previous business associate who I was licensed with is now trying to place a restriction of trade on me and trying to get me to...
Top Bottom