{"id":174239,"date":"2022-08-10T22:36:14","date_gmt":"2022-08-10T21:36:14","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=174239"},"modified":"2022-10-25T21:59:37","modified_gmt":"2022-10-25T20:59:37","slug":"restraint-trade","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/commercial-contracts\/restraint-trade\/","title":{"rendered":"How Does a Restraint of Trade Clause Work in England?"},"content":{"rendered":"\n

As a business, you must protect your commercial interests from businesses or shareholders who may seek to take advantage of your intellectual property<\/a>. Thus, a restraint of trade clause may provide the protection you require. While our law treats restraint of trade clauses within commercial contracts similarly to those within an employment context<\/a>, there are some key differences. This article will focus on the restraint of trade clauses within commercial contracts with shareholders or other businesses rather than employees. This should help your business use such clauses effectively within commercial agreements.<\/p>\n\n\n\n

What is a Restraint of Trade Clause?<\/h2>\n\n\n\n

Generally speaking, they include contract clauses<\/a> that restrict someone from doing something for a certain amount of time. As with everything, this sounds very simple, but in practice, your business will face several legal hurdles enforcing them.<\/p>\n\n\n\n

How Could These Clauses Be Helpful to My Business?<\/h2>\n\n\n\n

One practical example is a former shareholder (who is not an employee) wishing to sell shares. You may manage to have that shareholder agree to a contract to sell those shares, including a restraint of trade clause. This is because that shareholder may compete with your business by using their knowledge of your clients, the business sector and how your company operates. Alternatively, they could invest or seek employment with one of your rivals and use that information against you.<\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n

\n
\n Need legal advice?\n
\n \n Call 0808 196 8584<\/a> for urgent assistance.\n
\n Otherwise, complete this form, and we will contact you within one business day.\n <\/span>\n <\/div>\n\n \n\n
\n