Appendices
Introduction
What is meant by restraint of trade and legal proceeding?
Restraint of trade is restrictions that have been imposed on free trade or limitations on the individual liberty of traders to buy and sell freely. Restraint of trade clauses seek to protect the goodwill and trade secrets of a business and accordingly will seek to prevent staff from one company being poached by a direct competitor. Restraint of legal proceeding is restrictions from enforcing his action or procedure instituted in a court of law to acquire a benefit, interest, or right or to enforce a remedy.
For example, employers are often anxious to guard against direct competition from former employees. The only sure way to guarantee this is to remove them from the marketplace for a limited period of time, and the only way to do this is by means of a restraint of trade clause. Restraint of
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