Question 9b
Doc, a supplier of building materials, entered into the following transactions:
| (b) | Doc had employed a salesman, Fitt, whose contract of employment contained a clause preventing him, Fitt, from approaching any of Doc’s clients for a period of two years after he had left Doc’s employment. Doc has found out that, on stopping working for him, Fitt has started working for a company, Gen Ltd, wholly owned by Fitt and his wife, and is approaching contacts he had made while working for Doc. |
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Required:
In the context of company law, advise Doc as to the legality and likely outcome of the above situations.
Notes:
– in (b) the legality of the restraint of trade clause in Fitt’s contract of employment may be assumed; and
– the mark allocation is shown against each of the transactions above.