restraint of trade: meaning, definition, pronunciation and examples

Yes, legally, a non-compete is a type of restraint of trade. It is not automatically unlawful but must be reasonable in protecting a legitimate business interest (like trade secrets) and not overly broad in geographic scope, duration, or restricted activities.

Restraint of trade is a broader common law doctrine against unreasonable restrictions on economic liberty. Antitrust (mainly US) or competition law (UK/EU) are statutory frameworks that specifically prohibit anti-competitive practices like monopolization and cartels. Unlawful restraints of trade often violate antitrust laws, but not all contractual restraints rise to that level.

Yes. Courts often enforce restraints of trade if they are 'reasonable.' Reasonableness is judged by whether the restraint is necessary to protect a legitimate business interest (e.g., goodwill, trade secrets), is not overly harmful to the public interest, and is reasonable in its geographic and time limits.

Typically, the party seeking to enforce the restraint (e.g., the former employer) must first show it protects a legitimate proprietary interest. Then, the party challenging it (e.g., the former employee) must show it is unreasonable in scope or duration. The exact burden can vary by jurisdiction.

A legal doctrine that invalidates agreements which unreasonably restrict a person's freedom to conduct business or trade.

Restraint of trade is usually formal, legal, business, academic in register.

Restraint of trade: in British English it is pronounced /rɪˈstreɪnt əv treɪd/, and in American English it is pronounced /rɪˈstreɪnt əv treɪd/. Tap the audio buttons above to hear it.