Common Law Restraint of Trade: Fundamental doctrine establishing that restraints of trade are void unless reasonable and necessary to protect legitimate business interests. Key case law includes Nordenfelt v Maxim Nordenfelt (1894).
Competition Act 1998: Legislation ensuring the agreement doesn't create anti-competitive effects and complies with Chapter I prohibition on anti-competitive agreements.
Companies Act 2006: Primary legislation governing corporate aspects, including directors' duties and responsibilities in the context of business sales and restrictions.
Sale of Goods Act 1979: Relevant when the non-compete is part of a larger business sale agreement, governing the sale of goods aspects of the transaction.
Supply of Goods and Services Act 1982: Applies to service aspects of the business sale and associated non-compete provisions.
Trade Secrets Regulations 2018: Legislation governing the protection of confidential information and trade secrets, essential for non-compete restrictions.
Reasonableness Requirements: Legal principle requiring restrictions to be reasonable in duration, geographic scope, and scope of activities restricted.
Legitimate Business Interest Test: Legal requirement that non-compete provisions must protect a legitimate business interest to be enforceable.
Proportionality Principle: Legal requirement that restrictions must be proportionate to the business interest being protected.
Consideration Requirement: Legal principle requiring adequate consideration/payment for the non-compete restrictions to be enforceable.
