Restraint of trade

Resource type: Glossary item

Status: Maintained

Jurisdictions: England, Scotland, Wales

The principle that an individual should be free to follow his trade and use his skills without undue interference, thereby rendering a contractual term purporting to restrict an individual's freedom to work for others or carry out his trade or business void unless it is:

  • Designed to protect legitimate business interests; and

  • No wider than reasonably necessary.

For more information, see Practice notes, Restrictive covenants and garden leave (www.practicallaw.com/8-200-3267) and Atypical restrictive covenants (www.practicallaw.com/6-384-2533).

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  • Resource ID: 9-200-3455
  • Products:  IP&IT, PLC Glossary, PLC UK Commercial, PLC UK Construction, PLC UK Corporate, PLC UK Dispute Resolution, PLC UK Employment, PLC UK Environment, PLC UK Law Department, PLC UK Pensions, PLC UK Property, PLC UK Public Sector, PLC UK Share Schemes & Incentives
  • This resource is maintained, meaning that we monitor developments on a regular basis and update it as soon as possible.
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