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There is usually a time restriction attached to this restrictive covenant that will be ‘cascading’ i.e.

several different time constraints will be imposed so that in the event that the longest is considered unreasonable by a Court, the clause can be severed only to the extent that it is unreasonable.

In many cases, a contract lawyer will include a sub-clause that places a restriction on the area in which the contractor may compete with the Principal’s business.The ‘reasonable covenant’ sub-clause serves as an acknowledgment from the contractor of, firstly, its acceptance of the terms, and secondly an acknowledgment of the reasonable nature of the terms.This sub-clause will not prevent a court from determining a sub-clause as unreasonable in the circumstances.We inspect and regulate services that care for children and young people, and services providing education and skills for learners of all ages.Read about the types of information we routinely publish in our Publication scheme.

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