Restraint of Trade Doctrine: Common law principle that determines the enforceability of restrictive covenants. Any restriction must be reasonable and necessary to protect legitimate business interests.
Nordenfelt Test: Key legal precedent from Nordenfelt v Maxim Nordenfelt [1894] establishing the reasonableness test for restrictive covenants.
Competition Act 1998: Primary legislation governing competition law in the UK, prohibiting anti-competitive agreements and abuse of dominant market position.
Enterprise Act 2002: Legislation that provides framework for merger control and market investigations in relation to competition matters.
Article 101 TFEU: Retained EU law post-Brexit prohibiting anti-competitive agreements that may affect trade and competition within the market.
Employment Rights Act 1996: Primary legislation governing employment rights and responsibilities, relevant for employee non-compete provisions.
Trade Union and Labour Relations (Consolidation) Act 1992: Legislation governing collective labor rights and industrial relations, which may impact workplace agreements.
Equality Act 2010: Legislation ensuring non-discrimination and equal treatment, which must be considered in any employment-related agreements.
Contracts (Rights of Third Parties) Act 1999: Legislation governing when third parties may enforce terms of a contract, relevant for non-compete agreements affecting related parties.
Unfair Contract Terms Act 1977: Controls the use of unfair terms in contracts, particularly relevant for reasonableness of restrictive covenants.
Duration Requirement: Legal principle requiring that non-compete restrictions must have reasonable time limitations.
Geographic Scope Requirement: Legal principle requiring that territorial restrictions in non-compete agreements must be reasonable and justified.
Restricted Activities Scope: Legal principle requiring that the scope of restricted business activities must be clearly defined and not overly broad.
Consideration Requirement: Legal principle requiring that adequate consideration must be provided in exchange for non-compete restrictions.
Legitimate Business Interests: Legal principle establishing that non-compete restrictions must protect legitimate business interests such as trade secrets, confidential information, customer relationships, and workforce stability.
