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International Law

: Lightbulb IP blog

Contract Drafting Tips Series: Restraint of Trade Clause

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A restraint of trade clause seeks to restrict the freedom of a person to trade or deal in specified ways with assets, information or third parties. It can apply during a contractual relationship and also for a period after its termination or expiry. This article is part of our series on drafting tips for contract clauses. The law is that a restraint of trade is contrary to public policy and unenforceable unless the restraint is reasonable in the parties' interests and also in the public interest: Attwood v Lamont (1920) 3 KB 371. The typical situation we see is when a company, employer or employee calls us in a panic for advice on a restraint. It's best to check restraints earlier than this.

Full post as published by Lightbulb IP blog on March 12, 2008 (boomark / email).

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