Common Law - Restraint of Trade Doctrine: Fundamental principle that restricts enforcement of covenants that prevent individuals from carrying on their trade or profession unless reasonable and necessary to protect legitimate business interests
Competition Act 1998: Primary UK legislation governing competition law, which must be considered to ensure non-compete provisions don't constitute anti-competitive behavior
Enterprise Act 2002: Legislation that provides framework for merger control and market investigations, relevant for business sales with non-compete provisions
Article 101 TFEU (retained EU law): Post-Brexit retained EU law governing agreements that prevent, restrict or distort competition within the market
Contract Law - English Common Law: Basic principles of contract formation, consideration, and enforcement under English law that govern the validity of the agreement
Contracts (Rights of Third Parties) Act 1999: Legislation governing how third parties may enforce terms of a contract, relevant if non-compete affects related parties
Employment Rights Act 1996: Relevant when the seller remains employed in the business, governing employment rights and restrictions
TUPE Regulations 2006: Transfer of Undertakings regulations protecting employees' rights when a business changes hands
Reasonableness Requirements: Legal principle requiring non-compete restrictions to be reasonable in geographic scope, duration, and scope of restricted activities
Legitimate Business Interests Doctrine: Legal principle requiring non-compete provisions to protect genuine business interests such as customer relationships, trade secrets, and confidential information
Consideration Principle: Legal requirement that non-compete must be supported by adequate consideration, typically part of the purchase price in business sales
Enforceability Rules: Legal principles governing when courts may strike down overly broad restrictions and requirements for provisions to be capable of monitoring and enforcement
