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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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When selling my old business. A coffee shop, I signed a contract

Resolved Question:

When selling my old business. A coffee shop, I signed a contract to say I wouldn't open a new business within 1/2, I now have a restaurant and bar literally just outside the 1/2 mile, which they knew my intentions were, they are now trying to take me to court to get me closed down what can I do?
Submitted: 3 years ago.
Category: Law
Expert:  UKSolicitorJA replied 3 years ago.
Hello,

You should defend their actions as you are not in breach of contract as you are just outside the 0.5 mile radius and your business is not similar to the coffee shop as you are operating a bar and restaurant.

It appears that they are not entitled to the court order forcing you to close down.

Hope this helps
Customer: replied 3 years ago.

thats great thank you, XXXXX XXXXX i get your advice on this please, my contract says this:


 


For a period of 5 years (the non competitive period) after the closing date, the seller will not either individually or in conjunction with any other person or business entity or in any other manner whatsoever, have interest in, enter employment with, lend money to, advise or permit its name tp be associated with any business similar to or in competition with the purchaser within a half mile radius from the business, to include take away provision.


 


we think we are in the 1'2 mile radius but not when we drive from each business. we do not do any take away food and obviously they do take away sandwiches and baguettes and also have the coffee shop but we are a restaurant and bar, can they still close us down, is we are completely different?


 


thank you for your help!

Expert:  UKSolicitorJA replied 3 years ago.
Thank you.

They cannot close you down, only a court may do so but from what you say, you are not in a similar or competing business as you operate a bar and restaurant and theirs is a coffess shop.

I would not worry about this, they would need to first go to court and I do not see a court granting an order shutting you down, at worst, you could be ordered to change your offering so that you are not offering similar products as them.

All the best -please remember to rate the service.
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