Audit covenant reinforcement

There is a common range of commercial contracts which contain obligations that restrict the economic activities of one of the contractual parties after the commercial relationship has come to an end.

Examples of this would be:

• Contract of employment
• Compromise agreement following termination of employment
• Franchise agreement

A number of well-established legal rules exist which restrict the circumstances in which these post-termination covenants are effective.  The rules can also work to limit the extent of the covenant’s effect in practice. This sometimes means the covenant is entirely unenforceable.

Here to help

Whilst in many cases the individual circumstances of a case materially affect the way the rules work, we can check over your contracts and provide a reliable indication of enforceability. We can even propose alternative terms to improve a clause’s utility if it is going to be used again in the future. 

Where no detailed investigation into the facts of a case is necessary, we can offer this advisory service for a single, competitive fixed fee.

For further information, please do not hesitate to contact us: