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United Kingdom
restraint of traderestrictive covenantsseverance
Cox J in TFS Derivatives Ltd v Morgan
[2004] EWHC 3181 (QB)
Key Principle
A post-termination restrictive covenant will be enforced only where, on its true construction, it protects a legitimate business interest and goes no further than is reasonably necessary; the court first construes the covenant, then asks whether there is a legitimate interest to protect and whether the restraint is reasonable in scope.
Area of Law
General
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