What factors determine whether a restraint is reasonable

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Reference no: EM131668812 , Length: word count:1000

ASSIGNMENT -

David and Cathy intend purchasing a restaurant business from a local entrepreneur. They wish to ensure that he cannot set up a competing restaurant or café in the area within 12 months after the purchase or they believe that the investment will not be viable.

Advise David and Cathy as to how far they can go with respect to restraining the vendor's freedom of trade. 

What if they go too far?

Questions to consider in answering Question 8.7:

  • What area of law is the question concerned with?
  • Is a contract in restraint of tradevalid or void?
  • If a contract in restraint of trade is prima facie void, what does this mean?
  • How can David and Cathy protect themselves then? What factors determine whether a restraint is reasonable?
  • What is the effect on David and Cathy if the clause they insert is not reasonable?
  • See Nordenfelt v Maxim Nordenfelt Guns and Ammunition.

Assessment Criteria - Written presentation

  • Identify the issues of the problem.
  • Explain the relevant law relating to the problem.
  • Discuss the potential legal arguments relating to the problem.
  • Summarise a balanced conclusion to the issues of the problem.

Reference no: EM131668812

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len1668812

10/5/2017 4:31:54 AM

Australian student, total 1000 words. Written presentation - At all times, the answer was clearly structured, logical, and understandable with references. Identify the issues of the problem - All of the issues are clearly and accurately detailed with reference to cases with similar facts. Explain the relevant law relating to the problem - All of the relevant law is clearly and accurately detailed, and the Act and related cases are discussed. Discuss the potential legal arguments relating to the problem - All the legal arguments are clearly and accurately detailed, and there is a synthesis with the relevant law. Summarise a balanced conclusion to the issues of the problem - A balanced decision is accurately detailed with reference to alternative outcomes.

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