Q&A

Question: What is a reasonable restraint of trade?

Courts are more likely to uphold a restraint of trade if the restraint of trade is drafted in a way which is, in the view of the court, reasonably required to protect the employer. If the restraint of trade is drafted very widely and, for example, does not allow an ex-employee to work in the central business district for any similar business, and for an extended period of time, then the court is likely (subject to circumstances) to hold that restraint to be unreasonable and unenforceable.