Competition Act 1998: Primary UK legislation governing competition law that prohibits anti-competitive agreements and abuse of dominant market position. Must be considered to ensure non-compete provisions don't violate competition regulations.
Enterprise Act 2002: UK legislation that provides the framework for merger control and market investigations. Relevant for ensuring non-compete clauses don't create anti-competitive market conditions.
Article 101 TFEU (retained EU law): Retained EU law in UK that prohibits agreements which prevent, restrict or distort competition. Must be considered when drafting non-compete provisions that might affect trade.
Nordenfelt Doctrine: Common law precedent from Nordenfelt v Maxim Nordenfelt [1894] establishing the reasonableness test for restraint of trade. Non-compete clauses must be reasonable in duration, geographic scope, and scope of activities.
Companies Act 2006 (Directors' Duties): Sections 170-177 outline directors' statutory duties. Relevant when shareholders are also directors and subject to non-compete restrictions.
Companies Act 2006 (Shareholders' Rights): Provisions governing shareholders' rights and obligations that must be balanced against non-compete restrictions.
Contract Law Principles: Common law principles governing contract formation, consideration, and certainty of terms that must be satisfied for non-compete clauses to be valid.
Legitimate Business Interests Test: Legal principle requiring that non-compete restrictions must protect legitimate business interests rather than simply prevent competition.
Public Policy Considerations: Legal requirement to balance freedom to trade against protection of business interests, ensuring restrictions are not contrary to public policy.
Severability Principle: Legal doctrine allowing courts to sever unenforceable parts of non-compete restrictions while maintaining enforceable elements, important for drafting survival provisions.
