Restraint obligations Clause Samples
A restraint obligations clause defines the restrictions placed on a party, typically to prevent them from engaging in certain activities that could compete with or harm the interests of the other party. This may include prohibiting an employee from working for a competitor, soliciting clients, or disclosing confidential information for a specified period and within a certain geographic area after leaving a company. The core function of this clause is to protect the business’s legitimate interests by limiting actions that could undermine its competitive position or misuse sensitive information.
Restraint obligations. During the Restraint Period, the Employee must not, either directly, indirectly or as a result of contact by any other party, in the Restraint Area, without the prior written consent of the Company (which it may withhold in its absolute discretion):
(a) engage in a Restrained Business;
(b) take any action to prepare to Engage in a Restrained Business;
(c) be concerned or interested (directly or indirectly, or through any interposed body corporate, trust, principal, agent, shareholder, beneficiary, or as an independent contractor or in any other capacity) in a Restrained Business;
(d) solicit, canvas or secure the custom of any person who is, or was a customer, identified prospective customer, supplier, distributor or licensee of the Group with whom the Employee dealt at any time during the last 12 months of the Employee’s employment with the Company for the purpose of transacting business relating to the Restrained Business;
(e) accept any instructions to perform any work relating to the Restrained Business for any person who is, or was a customer, identified prospective customer, supplier, distributor or licensee of the Group; or
(f) induce or attempt to induce an employee or consultant of the Group to terminate their employment or consultancy with the Group.