Restrictive Covenants

Our Dispute Resolution Team regularly advises on the enforcement of restrictive covenants, whether it is a business seeking to enforce its contractual rights, or a business or individual who is having a restrictive covenant enforced against them.

“We understand that businesses must seek to protect their interests from time to time by enforcing restrictive covenants. The commercial environment can be tough and not seeking to enforce your rights can sometimes lead to the harsh result of lost revenues. At the same time, we understand the marketplace within which these covenants operate and the reality of seeking to enforce them in commercial circumstances.”
Ieuan Jones, Solicitor

What are Restrictive Covenants?

Restrictive covenants are very common in particular kinds of commercial contracts – not just employment contracts, but also franchise and distribution agreements and in sales of businesses. As the name suggests, restrictive covenants are clauses in a contract that try to restrict a party from doing something.

They seek to protect the commercial interests of a party – for example a franchise agreement will usually attempt to restrict a franchisee from soliciting or dealing with competitors, not only during their contractual relationship, but also for some time after the contract has ended.

How can we help you?

Striking the right balance with restrictive covenants is important, whether during the initial drafting, or where eventually seeking to enforce them. We have expertise in this area and can help guide businesses through this increasingly necessary method of enforcing their contractual rights. Enforcement can be either by means of a claim in damages or, in more urgent cases, by means of an injunction against the other party. Whatever circumstance you find yourself in, pay us a visit or get in touch and we will be happy to talk it through.

Recent Team Experience Includes:

  • Acting for business coach franchisee. Managed an early exit from a franchise agreement, including commercial settlement of the restrictive covenants in the agreement
  • Advising franchisor of human resources services on rights and enforcement procedures, following departure of various franchisees under a collective agreement
  • Advising a company client on the risks to it in appointing an employee in breach of that person’s covenants with their former employer.
  • Successfully defending and settling a dispute on behalf of an accountant accused of having breached the terms of a non-compete clause by their former employer.

What next?

If you require advice or you have questions, please do not hesitate to contact us to discuss the options available to you.  Please speak to Ieuan Jones on 01752 827120 or email him on [email protected]

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