Contract Agreements And Its Effect On Business Competition Essay

1553 Words Nov 16th, 2015 7 Pages
Contract is a kind of legally binding agreement which form between two or more parties and the parties will obtain rights, owe duties and have obligations from the subject matters in the agreement and it frequently occurs in our daily life, such as contract in employment. There is a specific situation arise from the contract which called restraints of trade and it is a clause in a contract which has the fundamental purpose is to prevent a party doing some kind of business activities, profession or employment. However, the courts have never accepted and supported this kind of provision because the restraints of trade were treated as interfering with or prohibiting a party doing their work and reducing business competition which do not conform with the basic ideas of the law of contract. Therefore, the common law usually classified the restraints of trade as void but not as illegal contract. Nevertheless, the courts will sometimes accept the restraints of trade if the party can provide some reasonable factors. In this essay, one kind of the restraints of trade which happened in employment will be emphatically discussed. Firstly, this essay will explain why the courts will only sometimes enforce the restraints of trade clauses in employment contract. Secondly, what the courts will consider to enforcing these clauses will be indicated. Moreover, how could Ronnie better protect his business. Lastly, what kind of further information that Ronnie can provide to help to fully advise…

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