Facts of the case :--

          Nordenfelt, the defendant in the instant case was a Swedish National. He sold his business of quick firing guns to the plaintiff Company for £2,87,500 against the following two conditions (restraints/covenants) :

1. That for 25 years, he would not engage in the similar business (i.e. Manufacturing of quick firing Guns) except on behalf of the company. (In simple, not to carry on similar business except on behalf of the company for a period of 25 years) and

2. That he would not engage in any business, whatever likely to complete in any way with the business carried on by the company (not to engage any business, which may complete in any way with the plaintiff Company)



Issue involved

The issue involved in the instant case were :

1. Whether the defendant was bound by the above two restraints (conditions/covenants)?

2. Whether the restraints were were void?

       With regard to the first question, the defendant was to be bound by by the first condition/covenant, since the defendant had sold the very business of the manufacturing guns for a large sum of money. However, the defendant was not bound by the second condition, which prevented him from engaging in any other competing business.
       With regard to the second question, if a covenant imposes general restraint on trade, which extends to the territory as a whole, it is void. Hence, the second covenant in the instant case is void. However, a general restraint, is not void at all times, but may be valid provided; it is found to be reasonable Both to the parties and the general public. Therefore, the first restraint is reasonable to both the parties because the plaintiff Company purchased business for a huge sum and the defendant sold away the business. It (1st condition) is also reasonable from the point of view of the general public, since an English Company was deriving (getting) benefit of the invention of a foreigner, a Swedish National. Therefore the first covenant is valid (not void). 



Judgement 


           The Court considered the first condition (covenant) as reasonable, since the defendant had sold the business for a huge amount and granted the injunction. But, the second condition, which prevents the defendant from engaging in any other competing business, was regarded unreasonable (as the restraint/condition would not protect the proprietary interest of the plaintiff Company).

24 comments:

  1. I have read your article; it is very informative and helpful for me. I admire the valuable information you offer in your articles. Thanks for posting it. AK-47 Rifles

    ReplyDelete
  2. Regardless of how enormous a crack or chip might be and any place it may be found, it must be repaired immediately. window ac gas filling charges in delhi

    ReplyDelete
  3. A couple of arrangements are detached safes, little weapon safes, and underlying firearm room/storeroom.Frankie Rugers

    ReplyDelete
  4. Your new air conditioning unit ought to incorporate mounting equipment, which should be joined to your window. Airconditioning

    ReplyDelete
  5. hello!! Very interesting discussion glad that I came across such informative post. Keep up the good work friend. Glad to be part of your net community. firearms for sale

    ReplyDelete
  6. You will in all likelihood discover air conditioning in the cinemas you join in, in a significant number of the stores where your family shops, and in the eateries where you eat. It might even be in your own home. Servicing & Repair

    ReplyDelete
  7. I know this is one of the most meaningful information for me. And I'm animated reading your article. But should remark on some general things, the website style is perfect; the articles are great. Thanks for the ton of tangible and attainable help. AR 15 Pistol Kit Silver Vein

    ReplyDelete
  8. This is exciting, nevertheless it is vital for you to visit this specific url: useful reference

    ReplyDelete
  9. This content is written very well. Your use of formatting when making your points makes your observations very clear and easy to understand. Thank you. sig p320 for sale

    ReplyDelete
  10. I am happy to read your article, thanks for sharing this information with us.
    AC on Hire in Gurgaon
    Split AC Repair in Gurgaon
    AC Service in Gurgaon

    ReplyDelete
  11. This is why it is critical to have the best home defense ammo available to achieve this goal. Ammo Primers

    ReplyDelete
  12. This comment has been removed by the author.

    ReplyDelete
  13. It is conceivable that you could be expected to take responsibility for awful things that occur because of fail to get your firearm. Consequently and to shield yourself from burglary, it is a smart thought to keep guns safely put away in your home. buy guns of glory resources

    ReplyDelete
  14. Thank you for some other informative blog. Where else could I get that type of information written in such an ideal means? I have a mission that I’m just now working on, and I have been at the look out for such information. cinema near me

    ReplyDelete
  15. Nice post. I was checking constantly this blog and I’m impressed! Extremely useful info specially the last part I care for such information a lot. I was seeking this certain info for a long time. Thank you and good luck. cinema near me

    ReplyDelete
  16. Fantastic, it's great since you want to learn more, After i obtain for this specific is generally the actual web page. ac repair st cloud fl

    ReplyDelete
  17. . On the off chance that you have a little condo, a one ton air conditioning framework will do yet, assuming you are hoping to cool a tremendous loft, you will require a higher limit air conditioning framework. https://www.wtfixair.com.au/

    ReplyDelete
  18. Thanks again for the blog. Really looking forward to read more. Will read on...Barnett Raptor Pro STR

    ReplyDelete
  19. Buying a forced air system of any kind ought to be explored before hand just because of the measure of power your forced air system might actually utilize. https://proaireq.com/air-duct-cleaning-equipment/

    ReplyDelete
  20. The cleaned air is then returned into the stockpile ventilation work of the air taking care of framework (bypassing" the air controller unit). Such an air cleaning framework under this plan presents numerous spaces of disappointment.Sydney air conditioning services

    ReplyDelete
  21. Thanks for the article post. Really thank you! Great.HVAC Repair in Rowlett

    ReplyDelete
  22. I am obliged for the blog article. Much thanks again. Much obliged.

    ac repair company in rowlett

    ReplyDelete

See Also..