Restraint of trade
A contractual clause that limits a person's ability to work, trade, compete, solicit clients, or use confidential information after a relationship ends.
Definition
Restraint-of-trade disputes often involve employment contracts, sale-of-business agreements, franchise arrangements, shareholder agreements, confidential information, customer connections, time period, geographic area, scope of restricted work, and whether enforcement is reasonable in the circumstances.
Key takeaways
A contractual clause that limits a person's ability to work, trade, compete, solicit clients, or use confidential information after a relationship ends.
Commercial Law
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Related legal problems
This glossary provides general information only and does not constitute legal advice.
Common situations
Restraint enforcement
Non-compete dispute
Confidential information dispute
Related resources
Resources and guides
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Civil Litigation Consultation Pack: prepare Summons, Notice of motion, Pleadings and identify missing records before legal advice.
Civil ProcedureChecklistCommercial Law Checklist
Commercial Law Checklist for preparing documents, facts, dates, and questions connected to corporate law.
Corporate LawFAQs
Restraint of trade FAQs
What does Restraint of trade mean?
A contractual clause that limits a person's ability to work, trade, compete, solicit clients, or use confidential information after a relationship ends.
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