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Restraint of Trade in the ACT
‘Restraint of trade’ in the ACT is the term given to a written clause in a contract, which has the effect of restraining one of the parties to the contract from engaging in activity which may be in competition with the other party. Restraint of trade clauses typically appear in contracts for the sale of a business, or in an employment contract, and in the latter case are intended to have the most effect after the employment relationship has been terminated. Restraint of trade in the ACT is governed by the common law.
