Restraint of Trade Deed Sale of Business 1.

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At a Glance

Restraint of Trade Deed – Sale of Business (with Commentary)

This Restraint of Trade Deed (Sale of Business) is used to protect a purchaser’s goodwill, clients, and confidential information following the sale of a business. It prevents the vendor from competing or soliciting clients within specified timeframes and geographic areas.

This precedent includes detailed commentary on restraint clauses, including reasonableness tests, cascading and targeted restraints, and the operation of the Restraints of Trade Act 1976 (NSW)

What This Deed Covers

• Restriction on carrying on or assisting a competing business
• Non-solicitation and non-interference with clients, suppliers, or staff
• Confidentiality and non-disclosure obligations
• Reasonableness and enforceability of restraint provisions
• Cascading restraint examples for varying time and area limits
• Governing law, notices, and execution clauses

Why Use This Template?

• Protects the purchaser’s goodwill and client relationships post-sale
• Ensures enforceable and reasonable restraints compliant with NSW law
• Includes cascading and targeted restraint examples for flexibility
• Accompanied by legal commentary explaining enforceability principles
• Easy to edit, customise, and implement

Suitable For

This precedent is ideal for buyers and sellers finalising a business sale who require a clear, enforceable restraint of trade deed supported by legal commentary on drafting and compliance.

INCLUDES

Includes clauses covering:

Restraint clauses including cascading and targeted restraint

Damage to business

Reasonability

Interpretation

General Provision

Counterparts

Further assurance

 

 

 

Jurisdiction

Notices

Severability

Variation

Waiver

Restrains the vendor and key people.

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