The objective of this essay is to look at restraints of trade clauses in regards to contracts of employment, and in contracts for sales of a business, which may be used to restrict competition, therefore contradicting the individual liberty of action in trading. From case law it can be shown there is a sharp contrast between the individual liberty and the public policy.
The law has been seen to protect competition for a very long time. Common law states and demands that the restraints that have been put on trade must be reasonable in order for them to enforce them.
According to Janice Nairns (2011) restraint of trade clauses can be defined as a type of planning method to help protect owners of business that intend to, nonetheless, prevent their previews employees from stealing clients or perhaps directly competing with their business, it also helps owners avoid franchisee from competing with the franchise incase the franchise relationship breaks down, likewise control they use by others, whether they are previous managers, joint enterprise partners, contractors, suppliers, agents or any other type of partner of particular information that might come to their ownership legally throughout the period of them working in the business after their individual contract ends
Nordenfelt v Maxim Nordenfelt 1894.
The classic law represents an unbiased and an impartial structure, in which individuals are able to pursue freedom of contract, and shadow their own self-defined conclusions,