Decisions on restrictive covenants in commercial contracts


Published by a ³ÉÈËÓ°Òô Commercial expert
Practice notes

Decisions on restrictive covenants in commercial contracts


Published by a ³ÉÈËÓ°Òô Commercial expert

Practice notes
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This Practice Note summarises key decisions on the enforceability of restraint of trade provisions (restrictive covenants) in commercial and corporate contracts.

For more information on restrictive covenants and the doctrine of restraint of trade in commercial contracts, see Practice Note: Restrictive covenants and restraint of trade in commercial contracts.

For a Practice Note summarising key decisions on the enforceability of post-termination restrictions (restrictive covenants) in contracts of employment, see Practice Note: Decisions on post-termination restrictions and garden leave in employment contracts.

This Practice Note includes some decisions that were made under EU competition law. Since 1 January 2021, EU competition law no longer directly applies in the UK. Where an agreement affects trade within the UK, the provisions of Chapter I of the Competition Act 1998 (CA 1998) apply. The Chapter I prohibition outlaws anti-competitive agreements and is based on Article 101 of the Treaty on the Functioning of the European Union (TFEU). EU case-law are likely to remain of interest, but from 1 January 2024 the Retained EU Law (Revocation and Reform) Act 2023 (REUL(RR)A 2023)

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Restrictive Covenant definition
What does Restrictive Covenant mean?

A covenant requiring the covenantor not to do the thing specified. The burden of a restrictive covenant binds successors in title where there is land benefiting from the covenant, the burden of the covenant was intended to run, and the successor to the covenantor has notice of the covenant.

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