A contract in restraint of trade
A) Is never reasonable and is always void
B) Is enforceable if the person wishing to impose the restriction can show that it is a reasonable means of protecting a legitimate interest
C) Is only enforceable after the expiry of a three month period after an employee has left a company
D) Is always enforceable where the employee has signed the agreement

Question

Quizplus · Accepted Answer

A contract in restraint of trade can be enforceable if it is reasonable and necessary to protect a legitimate interest, such as confidential information or goodwill of a business. However, it must not be wider than necessary to protect that interest. The enforceability of such a contract may vary based on the facts and circumstances of each case.

A Contract in Restraint of Trade