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Contract Between Equals Enforceable, Rules Court

25th June, 2014

When a financial adviser quit his job and set up his own business with another adviser, the company he left sought damages for breach of contract.

He had previously sold the goodwill in his client base to his employer and that agreement contained a ‘non-compete’ clause which lasted for 12 months from the date he left the firm.

The financial adviser claimed that the clause was unreasonable and thus void.

The High Court had to decide whether the non-compete clause was reasonable and concluded that, since the two parties were negotiating with equal bargaining power and it did no more than was reasonable to protect the purchaser’s position, it was enforceable.

For information or advice on structuring a contract to protect your commercial interests, please contact Stuart Scott-Goldstone on 0844 800 8346 or email [email protected].

 

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