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Protecting your Business with Restrictive Covenants

A restrictive covenant is part of a contract that limits certain kinds of business activity following a sale; at Business Lawyers Direct we are experienced in dealing with all types of restrictive covenants. Our team can explain, in simple terms, exactly what a covenant means, and what impact it will have on the future of a business.

Call us on 0333 777 8003 or contact us using our online enquiry form.

Types of restrictive covenants

  • A covenant against competition - limits seller's rights to compete with a buyer
  • A covenant against solicitation - restricts seller's ability to contact former customers
  • A covenant against disclosure - allows a buyer to restrict the seller's ability to use the information and knowledge acquired by the buyer
  • A covenant against recruitment - can stop the seller from poaching key employees

Why use restrictive covenants?

Covenants are designed to ensure that a newly bought business is not immediately devalued by competition from a seller, loss of key staff or the disclosure of sensitive data.

Our expert team have a wealth of experience in drawing up these legal documents and our approach focuses on:

  • Scope - what action needs to be restricted
  • Duration - how long do restrictions need to be in place
  • Area - where restrictions should be enforced

We understand that covenants can be confusing, but our legal team are here to help. Our experienced solicitors can advise you on the best kind of covenants for your situation, ensuring a smooth transaction and a positive start to a business relationship.

Contact Business Lawyers Direct

Call Business Lawyers Direct today on or contact us via our online enquiry form and one of our senior solicitors will get back to you.

Business Lawyers Direct is a division of A.S. Matthews Limited which is authorised and regulated by the Solicitors Regulation Authority (561754). Registered office: 136 Park Lane, Whitefield, Manchester, M45 7PX. Company No: 7643746. VAT No: 116572715. Director: Andrew H. Kormornick.
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