Employment: Restrictive Covenants

Mr Huggett left his employment with Prophet Plc to work for a competitor. His contract had a restrictive covenant intended to protect Prophet against the consequences of such a move. Such terms are legal and can be effective if correctly drafted. Unfortunately for Prophet, theirs said that Mr Huggett could not be involved in selling Prophet’s products, when it should have referred to someone else’s equivalent products. The court refused to interpret the covenant to give it the intended effect.

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