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United Kingdom restraint of tradeillegality and public policyseverance

Nordenfelt v Maxim Nordenfelt Guns and Ammunition Co Ltd

[1894] AC 535
JurisdictionUnited Kingdom
CourtHouse of Lords
Year1894
StatusBinding authority

Key Principle

A covenant in restraint of trade is prima facie void as contrary to public policy, but will be upheld where it is reasonable in the interests of the parties and reasonable in the interests of the public, judged by reference to the legitimate interest the covenantee is entitled to protect; a restraint may be valid even if worldwide and lengthy where the business sold is of corresponding scope.

Area of Law

Contract and Commercial

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