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Restrictive Covenants: Spot the difference – restrictions in sale and shareholder agreements
The courts take a markedly different approach to enforcing covenants in sale-and-purchase and investor agreements compared to those in employment contracts, reports Sam Whitaker ‘Generally, the courts treat restrictive covenants in sale-and-purchase agreements (SPAs) more favourably than those in employment contracts. This is because they assume the parties have equal bargaining power.’ Restrictive covenants in …
Cases Referenced
Cases in bold have further reading - click to view related articles.
- British Reinforced Concrete Engineering Co Ltd v Schelff [1921] 2 Ch 563
- Cavendish Square Holdings BV v El Makdessi [2012] EWHC 3582 (Comm); [2015] UKSC 67
- Dawnay Day & Co Ltd v de Braconier D'Alphen & ors [1997] IRLR 285
- Dranez Anstalt & ors v Hayek & ors [2002] EWCA Civ 1729
- Kynixa Ltd v Hynes [2008] EWHC 1495 (QB)
- Nordenfelt v Maxim Nordenfelt Guns and Ammunition Co Ltd [1894] AC 535
- One Step (Support) Ltd v Morris-Garner [2014] EWHC 2213 (QB)
- Systems Reliability Holdings plc v Smith [1990] IRLR 377
- Trego v Hunt [1896] AC 7
- TSC Europe (UK) Ltd v Massey [1999] IRLR 22
- Vancouver Malt and Sake Brewing Co Ltd v Vancouver Breweries Ltd [1934] UKPC 9