Latest news and views tagged Restrictive Covenants
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Sometimes the law is seen as confusing and uncertain, and sometimes what was an accepted interpretation is turned upside down by a court judgment. This month is no exception.
We have a further example...
High Court rules on non-solicitation clause
Background
When a buyer purchases a business, it usually wishes to ensure that the seller cannot compete with the business of the target post-sale. We therefore recommend that restrictive covenants...
Restraint of trade clause not to set up in business within five miles for 12 months was unreasonable and therefore unenforceable – Tim Russ v Simon Robertson, High Court
TR was an estate agency firm. It required its staff to enter into restrictive covenants that lasted for 12 months following termination of the contract. They included an obligation not to solicit TR’s...
Court refuses to sever offending wording in restrictive covenant clause if it affected another clause – Francotyp-Postalia v Whitehead, High Court
The franchisor and franchisee had restrictive covenants on the franchisee after termination. In order to be enforceable, restrictive covenants have to be reasonable as to duration, area and content. If...
Lonmar Global Risks Limited v West – Harmless misconduct?
HR Magazine recently published an article that I did on the case of Lonmar Global Risks Limited v West & others. The interesting point about the case was that two senior employees were found by the...
Failing to enforce restrictive covenants
In Associated Foreign Exchange Ltd v International Foreign Exchange (UK) Ltd and another, the High Court held that there was insufficient evidence that a restriction of 12 months went no further than was...
Restrictive covenant was justified to protect franchisor’s know-how – Pirtek v Joinplace, High Court
P had granted a 10 year franchise agreement to X. Following the termination of the agreement, the franchisee and others were involved in competing with P’s business. P alleged that this was in breach...