Computers & Law: Restraint Of Trade Clauses

To limit competitive activities that may damage their clients' business, legal advisers have developed drafting techniques to limit trading activities of rivals. Restraint clauses that do no more than underscore an existing monopoly right granted by law generally are strictly enforced. When the...

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Bibliographic Details
Published in:Intheblack 1989-02, Vol.59 (1), p.108
Main Author: Sharpe, Anna
Format: Magazinearticle
Language:English
Subjects:
Agreements
Clauses
Court decisions
License
Litigation
Restraint of trade
Software industry
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Summary:To limit competitive activities that may damage their clients' business, legal advisers have developed drafting techniques to limit trading activities of rivals. Restraint clauses that do no more than underscore an existing monopoly right granted by law generally are strictly enforced. When the restraint clause seeks to hinder a party's trade in a way other than that permitted by existing legal principles, difficulties may be encountered in enforcing the clause if it is breached by the other party. A number of different types of restraint of trade clauses are commonly found in contracts involving computer-related products. These clauses tend to be drafted in a tiered manner so that several restraints are imposed, each less restricting than the preceding one. The more complex the clause, the less probable that it will be enforceable.
ISSN:1832-0899