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LETS GET DOWN TO BUSINESS.

Question :
I work in a retail store and due to restraint of trade (selling of old business) means we can not sell online untill Feb next year. Due to Covid 19 lockdown and fewer people wanting to enter retail stores we used social media and advertising online to gain more sales over the phone. Does this constitute breaking the restraint of trade? And would there be exceptions to this due to the current financial situation small businesses are in? 

Question submitted 20/08/20 @ 04:29am
Industry: Legal
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  • Hi there,

    Would need to look at the words of the restraint itself, but potentially you are in breach (in may come down to whether you are “selling” online by procuring sales online, then taking orders over the phone). In a business sale context, there is typically no exception for COVID as the purchaser has paid $ for the benefit of the restraint. Without seeing the wording, I’d say there is certainly a risk that you are in breach. Happy to discuss further. Phil 021 705 914

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