Brisbane office (07) 3180 0150
Gold Coast office (07) 5529 8803
Home >  Blog >  Not all Restraints of Trade are Enforceable

Not all Restraints of Trade are Enforceable

Posted by Elizabeth Gore-Jones on 18 June 2019

Not all restraints of trade are enforceable.

Some matters that may impact the enforceability of a restraint include:

1. in the case of a franchise, did the franchisee operate from the same premises or do the same type of work before entering into the franchise?

2. what is the restraint protecting?

3. will the restraint stop the "restrainee" from earning a living?

4. is it against public policy?

5. can the protected party be protected in some other way?

6. is it reasonable?

7. who do the customers or clients "belong to"?

8. was the restrainee compensated?

9. the drafting of the restraint of trade clause itself.

Restraint clauses can greatly impact decisions parties make about their future.

 

Author: Elizabeth Gore-Jones
About: Elizabeth specialises in franchising law. She lectures at Bond University PLA in franchising, she sits on the Queensland Law Society Franchising Committee, she is a past member of the Women in Franchising committee and a past member of the Franchise Council of Australia.
Connect via: Twitter LinkedIn
Tags: Business Franchisee Franchisor

latest news

Bob Jane Corp Failure to Comply with Code

May 01 2020
The Franchising Code of Conduct requires that a franchisor advise a franchisee in writing at least 6 months before the end of the franchise term whether or not the franchisor intends to renew or extend the franchise agreement. A failure to com...

Quick Question?

Liability limited by a scheme approved under professional standards legislation

Brisbane Office Address: Clarence Chambers,
Level 10, 239 George St,
Brisbane QLD 4000

Gold Coast Office Address: Wyndham Corporate Centre
Level 9, 1 Corporate Court
Bundall QLD 4217

Central Post Office Box Address: P.O. Box 428
Oxenford, QLD 4217