Sentences with phrase «covenants in a commercial context»

Accordingly, as later confirmed by the Supreme Court in Guay inc. c Payette, 2013 SCC 45, the criteria for analyzing restrictive covenants in a commercial context will be less demanding than in the employment context, and the basis for finding such covenants to be reasonable will be much broader in the former as opposed to the latter.

Not exact matches

As discussed above, the reasonableness of a restrictive covenant is more broadly interpreted in the commercial context than in the employment context.

In addition, the court applied its own older decision in Tank Lining Corp. v. Dunlop Industrial Ltd. (1982), where it held that in all cases a party's entitlement to enforce a restrictive covenant was based on the protection of a legitimate or proprietary interest, such as the goodwill of a business in a commercial context or the confidential information unique to an employmenIn addition, the court applied its own older decision in Tank Lining Corp. v. Dunlop Industrial Ltd. (1982), where it held that in all cases a party's entitlement to enforce a restrictive covenant was based on the protection of a legitimate or proprietary interest, such as the goodwill of a business in a commercial context or the confidential information unique to an employmenin Tank Lining Corp. v. Dunlop Industrial Ltd. (1982), where it held that in all cases a party's entitlement to enforce a restrictive covenant was based on the protection of a legitimate or proprietary interest, such as the goodwill of a business in a commercial context or the confidential information unique to an employmenin all cases a party's entitlement to enforce a restrictive covenant was based on the protection of a legitimate or proprietary interest, such as the goodwill of a business in a commercial context or the confidential information unique to an employmenin a commercial context or the confidential information unique to an employment.

The court is required to presume as valid restrictive clauses in the commercial context (such as the sale of a business), while in the employment context it was required to scrutinize the reasonableness of the covenant.

There was no need to determine whether the restrictive covenant in this case (i) was entitled to a presumption of reasonableness (as done in the commercial context), (ii) required a high level of scrutiny (as done in an employment contract), or (iii) perhaps fell somewhere on a spectrum between these two ends (as is assumed in respect of franchise agreements, which are typically contracts of adhesion yet involve independent contractors in a commercial context).

Once it is established that a restrictive covenant resides in the commercial context, the covenant will be found to be lawful provided that it is limited to what is reasonably necessary for the protection of the legitimate interests of the party in whose favour it was granted.

In a pure commercial context, where a party may seek to restrain a seller of a business from competing with a buyer or prevent a shareholder from competing with a company he is leaving, the courts more readily enforce restrictive covenants.