Competition Act (Cap. 50B): Primary legislation governing competition law in Singapore. Ensures that non-compete restrictions are not anti-competitive and are reasonably necessary to protect legitimate business interests.
Contract Act (Cap. 53): Governs contract formation and enforcement in Singapore, including principles of consideration, valid contract formation, and reasonableness of contractual terms.
Restraint of Trade Doctrine: Common law principle requiring non-compete clauses to be reasonable in geographic scope, duration, and scope of restricted activities. Must protect legitimate business interests.
Companies Act (Cap. 50): Relevant for business sale aspects, including registration and transfer requirements, and protection of legitimate business interests in the context of business transfers.
Reasonableness Test: Legal test to ensure non-compete restrictions are reasonable and enforceable, considering scope, duration, and geographic limitations.
Public Interest Considerations: Legal principle requiring assessment of whether the non-compete restrictions serve public interest and don't unduly restrict competition or trade.
Legitimate Business Interests Protection: Legal requirement that non-compete restrictions must specifically protect legitimate business interests being transferred in the sale.
Proportionality Principle: Legal requirement that restrictions must be proportional to the business interests being protected and not more extensive than necessary.
