Seller Non-Compete Clause Unreasonable Without Geographic Limitation
Synthèse Legislator
Généré par l'IAA contract for the sale of a business, which included a non-compete clause binding the seller for five years within a specified radius, was partially overturned by the Court of Cassation because the clause, lacking any geographic limitation on the buyer's business activity, was deemed an unreasonable restriction on the seller's freedom to trade, thus rendering the non-compete provision void as contrary to public order, while the rest of the sales agreement remained valid.
Regeste Legislator
Généré par l'IASeller Non-Compete Clause Unreasonable Without Geographic Limitation: A contract for the sale of a business, which included a non-compete clause binding the seller for five years within a specified radius, was partially overturned by the Court of Cassation because the clause, lacking any geographic limitation on the buyer's business activity, was deemed an unreasonable restriction on the seller's freedom to trade, thus rendering the non-compete provision void as contrary to public order, while the rest of the sales agreement remained valid.