Where a stipulation in restraint of trade is part of 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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Such stipulations are generally considered valid if they are reasonable in scope, duration, and geographic area, as they aim to protect the legitimate interests of the business, such as its goodwill, without imposing undue restrictions on the individual's ability to work or engage in trade.

Where a Stipulation in Restraint of Trade Is Part of the Sale