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Restraint of Trade Covenants in Commercial Agreements

Nicholas Seng

[2019] SAL Prac 21

The doctrine of restraint of trade is usually associated with employment agreements. However, it has been applied to a wide variety of commercial agreements in local and foreign cases. This article looks at the enforceability of restraint of trade covenants in three prevalent commercial agreements (namely sale of business, franchise and joint venture agreements) and explains when and why Singapore and English courts have enforced or declined to enforce such covenants.