First Reference company logo

Inside Internal Controls

News and discussion on implementing risk management

machine cogs image

competitive activities

Five-year commercial restrictive covenant upheld

Non-competition and non-solicitation agreements are fairly common in employment contracts, but courts also commonly find them to be unenforceable due to unreasonable or unclear restrictions. When parties negotiate a restrictive covenant in the context of a transfer of a business, however, the rules are different, even where the seller of the business agrees to work for the buyer. The Supreme Court of Canada recently dealt with a case like this.

 

, , , , , , , , , , , , , , , , , , , , ,