Restraint of trade

Restraint of trade

Restraint of trade relates to the enforceability of contractual, including employment restrictions on freedom to conduct business and apply ones trade and skills. It is the constitutional right and privilege of a trader in a democracy, in all matters not contrary to law, to regulate his/her own mode of carrying on business according to his/her own discretion and choice. If the law has regulated or restrained the mode of doing this, the law must be obeyed. However, no power short of the general law ought to restrain a lawful free discretion. Restraints of trade can also appear in post-termination restrictive covenants in employment contracts.
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