Involuntary Restraints - Law of Contract
Although these are restraints imposed by professional bodies and trade associations at their members to certain purposes as e.g. enhancement of conduct of standards. Just for common law like restraints are prima facie void hence may be enforced whether may it is proved that they are reasonable and thus are not injurious to the public.
Contracts in Restraints of Trade in US
Therefore the principles or rules governing contracts in such restraint of trade in the US are contained in Contracts in the Restraint of trade Act under in sec.2 of the act contracts in the restraint of trade in the US are legally binding, nonetheless the High court is empowered to declare that like a contract void whether would it is satisfied such the restraint is unreasonable in that where it affords more protection so could necessary or is injurious for the public. Further for make its decision the court must have regard for.
- However the nature of trade, occupation or business or professional
- Area or locality covered through the restraint and
- Duration of the restraint and
- Other situation of the case.