Where a stipulation in restraint of trade is a part of the contract for the sale of a business,it may be valid if the restraint is within reasonable limitations to protect the business's goodwill.

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Quizplus · Accepted Answer

This is a valid statement as per the common law doctrine of "restraint of trade". Such a restraint may be valid if it protects the reasonable interests and goodwill of the business being sold. However, if the restraint is too broad or unreasonable, it may be deemed unenforceable by the court.

Where a Stipulation in Restraint of Trade Is a Part