Agreement On A Restraint Of Trade

The final question to consider is what are the restrictions on trade doctrine. In Chua Chian Ya v Music – Movements (S) Pte Ltd (4), the Singapore Court of Appeal distinguishes between restrictions on an artist`s ability to earn a living (i.e. by writing or performing music) and restrictions on an artist selling their own interest in their musical compositions. The Tribunal found that the doctrine of trade restraint applied to the previous deduction, but not to the latter. To the extent that the clause in question concerned the sale of the artist`s intellectual property rights, the Tribunal found that the clause was not a commercial clause. Other examples for which a deference has been deemed too broad are: to be a valid trade restriction, both parties must have provided a valuable consideration for their agreement to be applicable. In Dyer,[3] a dry cleaner had taken a loan not to operate in the same city as the complainant for six months, but the complainant had not promised anything. When Hull J. heard the complainant`s attempt to impose this deduction, he exclaimed: “If the complainant was there, he should go to jail until he has paid a fine to the king.” “Any member of the Community has the right to carry out all the transactions or transactions he has chosen, in a way that he deems desirable in his own interest, provided that he does nothing illegal: with the consequence that any contract which affects the free exercise of his activity or affairs by making it in the work he can do for others limited. , or the agreements it can enter into with others is a trade restriction agreement. It is inoperative, unless it is reasonable between the parties and does not harm the public interest. (3) The common law has developed with modified commercial conditions.

In the early 17th century, for example, Rogers v Parry[4] felt that a carpenter`s promise not to leave his home for 21 years was enforceable against him, for the time and place were safe. It was also decided (by Chief Justice Coke) that a man cannot commit not to use his trade in general. If a trade restriction is found to be unreasonable, it is null and unreasonable. It is unlikely that a court will impose a limitation on the trade clause where the restrictions on the role are not appropriate, excessively long or totally ambiguous. If a trade restriction is found to be unreasonable, the doctrine of severance pay may take an aid position. The doctrine of severance pay separates an unenforceable clause from the rest of the agreement, while the rest of the agreement remains in force. Commercial parties will often include severance pay in their contracts, but this is not absolutely necessary.