Reasonableness and the restraint of trade

Reasonableness and the restraint of trade

The reasonableness of a restraint and how it is dependent upon the facts can be seen in two

contrasting cases. In the Nordenfelt case discussed in the textbook on p 269-70, a worldwide

ban was deemed reasonable given that the covenantor was renowned worldwide and most of

his clients were foreign governments. In such a case, a covenant limiting Nordenfelt to not

competing within the UK would have been completely redundant given that much of his prior

business came from outside the UK. Conversely, in Mason v Provident Clothing & Supply Ltd,

1

a

covenant preventing a canvasser from working within 25 miles of London was held to be

invalid on the grounds that the business involved was a purely local one, and therefore the

restriction went well beyond the needs of the business. Discuss.

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