Restraint of trade agreement


Restraint of trade agreement



Seeking for help in terms with the Restraint of trade agreement? We have the necessary experience and competence to assist you with advice in relation to, and drafting of restraint of trade agreements and related clauses which protect your business and your intellectual property. We are involved day-to-day litigation pertaining to restraint of trade agreements and therefore we know what to look out for.

Restraint of trade clausesare generally found next to confidentiality agreements in employment contracts and consultancy agreements and commercial agreement between companies stop

These clauses are inserted for the purpose of protecting businesses from intellectual property theft, unfair business practices, poaching of staff and other unlawful breaches of trust which could cost a company a lot of money. However unfortunately these clauses are often used to unfairly prevent someone leaving the company for terminating the contract with the company from competing fairly with the erstwhileemployer or contracting company. It is important to ensure that your rights are protected with you are company or the consultant or the reseller etc. If you are a worry about your business and would like to secure it from all unforeseen troubles that may create by your employees, this is the clause your trouble-shooter.

Why Do You Need to Know About Restraint of Trade Clauses?

This clause must be known by both- the employer as well as the employees. A restraint of trade agreement is a provision that is placed into a contract by prospective employers who want to safeguard their business process, data, confidential information, and other special knowledge, so that it does not fall into the hands of their competition.

The restraint of trade clause comes with the intention where it is intended to ensure that any of the former employer’s business secrets, confidential information, and special knowledge, which the former employee may have acquired over the term of his employment, is not made available to the competitors or to be used in any other manner. In a contract in restraint of trade, there will a party (the covenantor) agrees with any other party (the covenantee) to restrict his liberty in the future to carry on trade with other companies not a party to the contact.

The law with regard to restraint of trade and confidentiality agreements in the Republic of South Africa is often not what you think. There is a lot of precedent in the Labour Court and High Court which is constantly developing penalties to be taken into account when drafting such a clause.

How we can help?

If you are an employer and wants to draft an employment contract for a future employee, you must seek us for better advice. We will be your restraint of trade lawyer will give you a complete information and minimize the hassle of possible future disputes in this area. And, in case, if you are an employee who found a job with the parameters of the existing restraint of trade clause, we will give you the assistance you need for a smooth transition into your new employment. We can help the companies by offering great protection, including-

-Protecting trade secrets and other confidential information

-Protecting goodwill of a business;

-Maintaining even competition

So, if you wish to seek our advice all require assistance with drafting any contract clause, invite you to contact us.

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