Difference Between Voluntary Nature And Freedom Of Contract

1553 Words 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 …show more content…
Voluntary nature happens when two or more parties want to make a contract and it is a choice for individuals or business organisations to decide whether they make a contract and when the terms in the contract are suit for both parties, they will accept and make the contract or not. Therefore, make a contract is based on the voluntary and willing principles. Turning to the freedom of contract, it means one party can not mislead by another party and can not use of force or the threat of force when the parties decide to make a contract. Moreover, the parties should have equality of bargaining power and based on their public interest. And the content of the contract also should be reasonable for both parties. However, the restraints of trade clauses in employment contract do not comply with the principles of the law of contract. Even employees do not satisfy with the provision, however, due to they really want to get this job, they still will accept this contract and this is breach the voluntary nature. Furthermore, because of the restraints of trade in employment, the employee will have less bargaining power than employers and it can not provide an equality of public interest. Therefore, the courts will regard the restraints of trade as prima facie void and do not enforce the restraints of trade …show more content…
To begin with, trade secrets is a kind of proprietary interests which belong to the employer and it may a kind of special manufacturing process or a kind of information which the business will rely on and these can only be used in the internal of the business. In Faccenda Chicken Ltd v Fowler, if the information is easily obtain from the public, it will not regard as trade secrets and will not get protection. Furthermore, the use of the office manual is also not a trade secrets because it does not interfere in the proprietary interest in H & R Block Ltd v Sanott and Another. Therefore, in the case of Ronnie, he provides a manual to his employees which excerpt from a published book on carpentry is not a kind of trade secrets. On the contrary, if the information which carried with a obligation of confidence, the employees have the responsibility to keep these information from outsiders during the course of employment and also should keep its confidence and can not disclosure or use it after ceasing the employment

Related Documents