Restrictive Covenants

When you run a business, it’s imperative that you protect your intellectual property, confidential information and contractual rights. The use of restrictive covenants within contracts can help you to protect your business against damages and loss in the future.

Here at Nash & Co Solicitors in Plymouth, our team of commercial and business lawyers have the knowledge and expertise to provide advice on the enforcement of restrictive covenants. Whether you’re seeking to enforce your contractual rights against a business or an individual, we’re here to support you.

Restrictive Covenants - Person Signing Contract - Nash & Co Solicitors

“We understand that businesses must seek to protect their interests from time to time by enforcing restrictive covenants. The commercial environment can be tough. Not seeking to enforce your rights can sometimes lead to the harsh result of lost revenues. At the same time, we understand the marketplace within which these covenants operate. As well as the reality of seeking to enforce them in commercial circumstances.”
Jamie Carr, Solicitor

What is a Restrictive Covenant?

Restrictive covenants are commonplace in commercial contracts and employment contracts. As the name suggests, a restrictive covenant is a clause in a contract that’s designed to prevent and restrict a party from doing something. A restrictive covenant seeks to protect the commercial interests of a party. It also works to protect their valuable or confidential information from misuse.

In a commercial contract context, this could be a clause in a franchise agreement that prohibits or restricts the franchisee from dealing with competitors. This typically applies during the contractual relationship and for some time afterwards.

Another example of this would be a contractual clause that stops an employee from using knowledge gained during employment to ‘poach’ clients once they’ve left your company. This is sometimes referred to as a ‘post-termination restrictive covenant’.

Restricted covenants are a complex and constantly evolving area of business law. As such, it’s essential to get specialist legal advice on creating and enforcing them.

Why choose Nash & Co Solicitors?

Restrictive Covenants - Hard Working Employee - Nash & Co Solicitors

Our knowledgeable solicitors have the skills and experience to provide practical and cost-effective advice on restrictive covenants.

We know how crucial it is to strike the right balance with a restrictive covenant. This applies from the initial drafting stage through to seeking to enforce them. Our team have a wealth of expertise in this area and are on hand to guide businesses through this process. Whether you are enforcing your contractual rights through claiming damages or by issuing an injunction, our commercial solicitors are here to help you. 

In recent years, our team have represented businesses of all sizes across the South West, across a wide of sectors. Having worked with sole traders, SMEs, large companies and international organisations, we have the skills and experience to help your business.

Some of our recent experience includes:

  • Acting for business coach franchisee, we managed an early exit from a franchise agreement. This included a commercial settlement of the restrictive covenants in the agreement.
  • Advised the franchisor of a human resources services business on rights and enforcement procedures, following the departure of various franchisees under a collective agreement.
  • Advised a company client on the risks of appointing an employee found to be in breach of covenants with their former employer.
  • Successfully defended and settled a dispute on behalf of an accountant accused of having breached the terms of a non-compete clause by their former employer.

Contact us

If you’d like to get some advice on restrictive covenants or you’d like to know more about how they can be applied within your business, please contact Jamie Carr and the Commercial Disputes team. You can reach them by phone on 01752 827014. You can also email Jamie at [email protected]. Our Commercial Dispute Solicitors are happy to discuss the options available to you and to give you more information.

Alternatively, you can arrange a call back from the team by submitting a request through our contact form.

Request a callback from Nash & Co Solicitors