The starting position in relation to any restrictive covenant
is that it will be regarded as void for attempting to restrain trade unless the employer is able to demonstrate that (i) it has a legitimate proprietary interest that it is appropriate to protect and (ii) the protection sought is no more than is reasonable having regard to the interests of the parties and the public interest.
The Lands Tribunal has power in certain circumstances to modify or discharge restrictive covenants
where the original purpose of the covenant has become inappropriate.
Such restrictions may include, but are not limited to, deed restrictions, restrictive covenants
or conservation easements.
There are a number of ways potentially to overcome problematic restrictive covenants
but it is important to seek expert legal advice as early as possible.
The restrictive covenant
may only operate for a short time.
In general, a restrictive covenant
that does not exceed the business service area of the employer and does not last longer than two years is likely to be reasonable in scope.
While TEI acknowledged the desirability of legislation to clarify the treatment of such amounts, it asserted that the proposed restrictive covenant
provisions are overbroad.
Modern examples of a restrictive covenant
could be, for example, somebody who was considering selling part of an extensive back garden for somebody else to develop.
Contrary to popular belief, restrictive covenants
are indeed enforceable, although courts will scrutinize them carefully.
You should consider including restrictive covenants
in the contracts.
Based on NorAm's current debt maturity schedule, these restrictive covenants
could fall away as early as September 2001.
This case is contrary to the trend in many jurisdictions to modify or rule restrictive covenants