Restraint of trade is one of the practices, which require particular consideration due to the need for ensuring its legality. From this perspective, the primary guidance is presented by exceptions, which serve as evidence to lawful adoption of this measure (“Determining whether restrictions are enforceable – Overview,” n.d.). Therefore, it is critical to understand the possibilities in this respect, which can be examined by considering an example of such cases.
The freedom to manage tangible and intangible assets is the main condition, which provides for an opportunity to impose restraint of trade when making agreements. More particularly, the confidentiality of processed documents can be the factor, which creates a chance for resorting to this solution (Nelson, 2006). For instance, when an employee leaves a company and decides to work for its competitors, this provision is crucial for respecting the former firm’s interests. In this situation, the restrictions would be related to sensitive data they were allowed to access and only valid for a finite period of time. Moreover, they positively correlate with all applicable regulations, including the need for protection of assets, reasonability for this purpose, and their importance for public representation (“Determining whether restrictions are enforceable – Overview,” n.d.). Hence, such an agreement is feasible and made with regard to rules, which makes it legitimate.
To summarize, the problem of the permissibility of restraint of trade is a complex issue, which is guided by legal considerations. It is possible to implement when the circumstances correspond to specific factors, as in the case of employment contracts, thereby protecting companies’ data. Thus, the application of this practice to the matter is admissable when these aspects are addressed, and there is an actual need for implementing this measure, as in the presented example.
References
Determining whether restrictions are enforceable – Overview.(n.d.). Lexis Nexis. Web.
Nelson, B. (2006). Law and ethics in global Business: How to integrate law and ethics into corporate governance around the world. Aspen Law Publishers.