Contract and Trade

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Table of Contents Introduction 1 Contracts in Restraint of Trade 1 Case 1: Wrigglesworth v. Wilson Anthony 4 Case 2: Svenson Hair Center Sdn Bhd v. Irene Chin Zee Ling 6 Case 3: Shanghai Hall Ltd v. Town House Hotel Ltd 8 Case 4: Polygram Records Sdn Bhd v. Hillary Ang & Ors & Anor 10 Case 5: Pertama Cabaret Nite Club Sdn. Bhd. v. Roman Tam 12 Case 6: Nagadevan Mahalingam v. Millennium Medicare Services 14 Case 7: Thomas Cowan & Co Ltd v. Orme 16 Case 8: Schmidt Scientific Sdn Bhd v. Ong Han Suan & Ors 17 Case 9: Yong Yok Min v. The Miri Municipal Council 20 Contracts in Restraint of Legal Proceeding – Section 29 21 Case 10: Darshan Singh v. Farid Kamal Hussain 21 Contracts in Restraint of Law in Singapore 23…show more content…
The Contracts Act says: “Every agreement by which anyone is restrained from exercising a lawful profession, trade, or business of any kind, is to that extent void”. To this there are exceptions. The provisions on contracts in restraints of trade is more restrictive than its English. Counter-part section 28 of the contracts Act states: Exception 1 – One who sells the goodwill of a business many agree with the buyer to refrain carrying on a similar business, within specified local limits, so long as the buyer , or any person deriving title to the goodwill from him , carries on a like business therein : Provided that such limits appear o the court reasonable, regard being had to the nature of the business. Exception 2 – Partners may upon or in anticipation of a dissolution of the partnership, agree that same or all of them will not carry on a business similar to that of the partnership within such local limits as are referred to in exception 1. Exception 3 – Partners may agree that some one or all of them will not carry on any business, other than of the partnership, during the continuance of the partnership. Therefore, restraint of trade in any agreement is void. The whole contract is not invalidated by the words “to that extent”. Apart from the exceptions, all classes of contracts in restraint of trade are prohibited. The words “every agreement” are wide enough to cover not only commercial agreements, but also agreements of
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