Restraint Of Trade In Australia

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Recommended: Legally upholding a restraint of trade

Question 3: Restraint of Trade
It is the believe of this writer that if Pat were to be sued for taking work in Australia by Mingers Ltd that the case would be unsuccessful. The main reason for this is that Mingers putting a restriction on where Pat is doing business with competitors. This is a called a restraint on trade and it’s a section of contract law with some boundaries to it. Restraint on trade is the “...economic injury that involves interfering with another person’s ability to do business freely” meaning that its stops a person from doing business with any other organization after a contract has been ended with certain party.
This doctrine will only be valid if there is a “…there is a legitimate interest to protect… goes no further …show more content…

The plaintiff ran a business which was very specialised and had specific intellectual properties which were thought to the staff. The defendant had a clause written into his contract with plaintiff that stated he could not carry on as competition to his former business for twelve months’ post-employment. The defendant did not follow this and went straight into competition. It was held that the scope of the restriction of trade was too long and that Murgitroyd and Company Limited choice to have this was unwarranted.
As said one of the reasons as to why a case between Mingers and Pat would be unsuccessful in is because of the heaviness of the restrictions. The fact that Pat would need to get approval from Mingers Ltd for him to work in any other audio-visual productions for the next ten years and in any part of the world seems too harsh on the young actors’ career. Some changes would need to made for case to survive in a court of …show more content…

The doctrine of frustration is when a contract is “…incapable of being performed due to an unforeseen event (or events)” leading to a termination of the contract. There are many ways in which a contract can be frustrated with supervening illegality being the one that represents this case the most. Supervening illegality is when “…a statute or regulation or court decision makes the object of an offer illegal” meaning it’s when part of the contract becomes illegal, which in this case is the chemical in Maxi-rip, creating a termination of a contract. This should be the approach of the company that produces Maxi-rip if Pat decides to sue for

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