Restraint of Trade
/rɪˈstreɪnt əv treɪd/
Definitions
- (n.) A contractual or statutory limitation that restricts a party's ability to carry on business or trade, often to prevent unfair competition.
The court struck down the non-compete clause as an unlawful restraint of trade.
- (n.) A doctrine that evaluates the enforceability of agreements limiting commercial freedom, balancing public interest against private agreements.
Under the restraint of trade doctrine, courts assess whether the restriction is reasonable and necessary.
Related terms
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Commentary
Restraint of trade clauses must be reasonable in scope and duration to be enforceable; overly broad restrictions are typically void as against public policy.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.