Solicitors to Write Restrictive Covenants in Manchester

A restrictive covenant is a contractual provision that limits one party's future business activity. There are four common restrictive covenants.

• A covenant against competition limits the seller's ability to compete with the buyer.
• A covenant against solicitation restricts the seller's ability to poach or deal with former customers or clients.
• A covenant against disclosure enables the buyer to restrict the seller's ability to use the information and knowledge that were acquired by the buyer.
• A covenant against recruitment can stop the seller from poaching key employees.

The aim of these covenants is to enable the business to continue for the buyer just as it was for the seller. Without contractual covenants, a seller would generally be free to immediately compete against the buyer, reducing the value of the business.

To be enforceable a restrictive covenant must be reasonable in:

• Scope - what action is being restricted?
• Duration - for how long?
• Area - where the restrictions are to be enforced?

At Business Lawyers Direct, whether we are acting for buyer or vendor we can negotiate the best terms for your business transaction. One of our experienced commercial solicitors will be able to advise you on appropriate use of restrictive convenants when preparing contractual documentation.

Call Business Lawyers Direct today on 0845 371 0701 or contact us via our online enquiry form and one of our senior solicitors will be pleased to discuss your requirements.