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Where am I now? Lawlink > Law Reform Commission > Publications > APPENDIX

Report 9 (1970) - Covenants in Restraint of Trade

APPENDIX

History of this Reference (Digest)

Division 5A - Restraint of trade.
89a. (1) A promise in restraint of trade shall be valid to the extent, in point of time, place, nature of restraint and otherwise, to which it is not against public policy, but only to that extent, whether the promise is in severable terms or not.

(2) Subsection one of this section does not affect any question concerning that validity of a promise in restraint of trade, other than questions arising on grounds of public policy.

(3) Where-
      (a) a promise in restraint of trade is made to any person;
      (b) he or a person through whom he claim brings proceedings in any court for relief in respect of the promise, whether the relief is-
          (i) by way of damages for breach of the promise;
          (ii) by way of injunction to restrain breach of the promise;
          (iii) by way of declaration concerning the validity of the promise to any extent; or
          (iv) otherwise;
      (c) the promise is to any extent against public policy: and
      (d) it appears to the court that the promise is thus against public policy by reason of, or partly by reasons of, a manifest failure to attempt to make a promise which is reasonable as between the parties, the court may, on such terms if any as it thinks fit-
      (e) refuse to grant that relief: or
      (f) grant that relief as if this subsection had not been enacted, but with such limitations and restrictions if any as the court thinks fit.

(4) References in this section to public policy references to public policy in respect of restraint of trade.

(5) This section applies only to a promise in restraint of trade made after the commencement of the Conveyancing (Amendment) Act, 1970.

(6) This section applies notwithstanding any stipulation to the contrary.

(7) This section does not affect the operation of-
      (a) section three of the Trade Union Act 1881 ;
      (b) Part Two of the Monopolies Act, 1923 ;
      (c) section seventy-seven of the Co-operation, Community Settlement, and Credit Act, 1923; or
      (d) any other enactment concerning the validity of a promise in restraint of trade.
 

Preface | Report on Covenants in Restraint of Trade | Appendix



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