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In common law, a test of reasonability is followed. An agreement in restraint of trade is valid, if:

Option: 1

There is a valid interest that the party imposing the restraint is trying to protect.


Option: 2

The restraint is no more than that which is necessary to protect this interest.


Option: 3

Restraint is not contrary to public interest.


Option: 4

All of the above.


Answers (1)

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Ensuring freedom to the contract would mean legitimizing agreements in restraint of trade, which would result in parties agreeing to curb competition. Hence option D.

Posted by

rishi.raj

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