Where a stipulation in restraint of trade is part of the sale of a business, it may be valid if the restraint is within reasonable limitations to protect the business's goodwill.

Question

Quizplus · Accepted Answer

A restraint of trade clause in a business sale can be valid if it is reasonable in scope, duration, and geographic area, as it aims to protect the business's goodwill and prevent unfair competition.

Where a Stipulation in Restraint of Trade Is Part of the Sale