NSW Breach of Non compete clause in contract

Discussion in 'Commercial Law Forum' started by Tally Muk, 30 September 2018.

  1. Tally Muk

    Tally Muk Member

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    I own a retail plant nursery. I just bought my business partner out and in the termination of partnership agreement it has a non compete clause (directly and indirectly). His partner just registered a business and they are now selling plants at the local markets close to when my business is. Because it is under his partners name but he works with him, is it a breach of contract?
     
    #1 Tally Muk, 30 September 2018
  2. Rod

    Rod Well-Known Member
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    Depends on how the restrictive clause is written.

    If the 'indirect' reference is clear enough and covers this circumstance then you probably have a cause of action.
     
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    #2 Rod, 30 September 2018
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  3. DMLegal

    DMLegal Well-Known Member

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    Rod is spot on - the term of the non-compete clause and the scope (as in the area and activities it covers) are relevant in determining whether or not it can be enforced. Your best bet is to send a cease and desist letter referring to the clause and failing that, obtain legal advice.
     
    #3 DMLegal, 11 October 2018
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