Validity Of Restrictive Covenants In Contracts

Introduction

The bedrock of modern-day commerce and trade is based, inter alia, on the relationship between contracting parties, which is governed by the principles of the law of contracts. Technological advancement and globalisation have fostered additional complexities in this sphere, making it incumbent on the parties to protect their legitimate business interests. In a bid to preserve and protect interests such as confidential and proprietary information, ideas and trade secrets, contracting parties often feel the need to include restrictive covenants, impeding the other party from exercising its liberty to use any confidential information or carry out a specific profession, trade or business with any other parties without seeking prior permission from the contracting party. Such restrictive or negative covenants can be of various kinds and include, without limitation, non-compete, non-solicitation and confidentiality clauses.