Restrictive Covenants Part 1: Restraint of Trade Clauses

Introduction Restrictive covenants are clauses, which have the effect of preventing one party to a contract from doing something, which they would otherwise be perfectly entitled to do. In this blog, I am going to focus on the restrictive covenants known as “restraint of trade” clauses, which are typically inserted into employment contracts or contractor service agreements. Restraint of trade …

Governing Law (Does the Contract do what it says on the Tin?)

Why not just give in when a customer or supplier wants a contract to be governed by the laws of the country they are based in? Well it might work and it might not, and whilst this is not an exhaustive list, here are a few things to think about….. 1. The Biggest Show in Town Problem If you are …

Contract Translations (A Rose by any other name….)

Next time you are negotiating a contract with a business based in a country where English is not the first language, always try to put language in there which makes clear that the language of the Agreement is English and that in the event of any conflict between the English version and a translation, the English version will take precedence. …

Force Majeure Clauses

I have noticed over the years, that the point in contract negotiations where the lawyers start talking about the force majeure clause often coincides with the point at which clients show the first serious signs of losing the will to live. And yet (strange but true) if a force majeure clause does not meet the business needs of one or …

Reasonable Indemnities (Hmmph)

Indemnities (like industrial strength cleaners) have their place in the world, but (also like industrial strength cleaners), they should not be over-used and they should not be used in the wrong places. I have lost count over the years of the number of times a client has reviewed a contract before me, and failed to strike through language requiring them …