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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I have terminated a contract with a company at the end of August.

Customer Question

I have terminated a contract with a company at the end of August. The following clause was in the contract.
AVC (my company) shall not take on commercial undertakings of any kind with companies in competition, nor promote the sale of any competitive product , nor construct personally products that are similar to those proposed for Parmacontrols, nor assume participation in companies in competition with the same principal Parmacontrols. This commitment is valid during the relationship and for three years after expiry.
Is this clause enforceable?
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.
Alex Watts : Hello my name is ***** ***** I will help you with this.
Alex Watts : Was this a contract between companies or were you employed please?
JACUSTOMER-ckq4eckm- :

It was between companies

Alex Watts : Did both companies read and agree the contract terms? I assume they did?
JACUSTOMER-ckq4eckm- :

Yes they did

Alex Watts : Ok. Then yes it is enforceable.
Alex Watts : If it was a consumer contract it may not be enforceable as there are all sorts of rules such as unfair terms in consumer contract regulations etc
Alex Watts : But these do not apply to business to business contracts.
Alex Watts : As long as each business understood the terms, they are enforceable. They agreed to them and no court is going to go behind what they intended and agreed to.
Alex Watts : Can I clarify anything for you about this today please?
JACUSTOMER-ckq4eckm- :

Yes. I thought this may be covered under the restraint of trade rules. My company provided sales support for Parmacontrols.

JACUSTOMER-ckq4eckm- :

Parmacontrols is a re-seller of equipment provided by other manufacturers. The company that I want to work with is an OEM.

JACUSTOMER-ckq4eckm- :

That supplies equipment similar to that supplied by Parmacontrols.

JACUSTOMER-ckq4eckm- :

The only thing that I would be taking with me is my contacts that I have built up over a number of years all of which were acquired before I start to work with Parmacontrols.

Alex Watts : Previous work is likely to be fine, but anything acquired whilst a under this contract unlikely to be.
Alex Watts :

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