CONTRACT OF EMPLOYMENT – EXPRESS TERMS (2)
Restraint of Trade
Restraint of Trade Clauses or ‘Restrictive Covenants’
Nordenfelt v Maxim Nordenfelt  AC 535 (HL), 565 (Lord Macnaghten):
‘The public have an interest in every person’s carrying on his trade freely: so has the individual. All interference with individual liberty of action in trading, and all restraints of trade of themselves, if there is nothing more, are contrary to public policy
. . . . ’
Esso v Harper’s Garage  AC 269 (HL), 306 C-D (Lord Morris):
In these cases … there are two freedoms to be considered – one the freedom of trade and the other the freedom of contract; and to that I will now again venture to add that it is a mistake to think that public interest is only concerned with one; it is concerned with both.’
Classes of Legitimate Interest
(i) Special knowledge
Forster v Suggett (1918) 35 TLR 87 (Ch) *lexis only
Morris v Saxalby  1 AC 688 (HL)
(ii) Customer connections
Home Counties Dairies v Skilton  1 WLR 526 (CA) (facts below)*
Area; Duration; activities
Fitch v Dewes  2 AC 158 (HL),
Mason v Provident Clothing  AC 724 (HL)
Home Counties Dairies v Skilton  1 WLR 526 (CA)
‘The employee expressly agrees not at any time during the period of one year after termination of his employment … either on his own account or as representative or agent of any person or company, to serve or sell milk or dairy produce to … any person who at any time during the last six months of his employment shall have been a customer of the employer and served by the employee in the course of his employment.’
See also Fellows v Fisher (below)
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