Law Tram simplifies restrictive covenants and restraint clauses in business sales by connecting you with licensed Australian lawyers who can explain how these clauses limit competition, protect goodwill and affect your rights after settlement. This fully online and obligation-free service helps you understand the enforceability, risks and practical impact of any restraint before you proceed.
Most business sale contracts include clauses that prevent the seller from competing with the buyer or soliciting clients after settlement. These are known as restraint of trade clauses, non-compete agreements, or restrictive covenants.
While these clauses are common, they must be carefully drafted to be enforceable. If they are too broad in time, geography or scope, a court may decide they are invalid. On the other hand, buyers need to ensure they’re adequately protected from unfair competition once the sale goes through.
Law Tram connects you with lawyers who can review, draft or negotiate these clauses as part of your business purchase or sale, and help you understand your rights and obligations.
Start by completing our secure online questionnaire. This step allows you to provide essential details about your business sale and any restraint clauses you're concerned about.
Law Tram’s advanced technology generates a confidential legal summary of your matter while keeping your personal and business details private.
Your confidential legal summary is shared with our network of vetted lawyers who review your case to determine how they can assist.
If a lawyer believes they can help, they will initiate a chat with you through the Law Tram platform. Your contact details remain private unless you choose to share them.
You are under no pressure to retain any lawyer unless you are confident in their ability to assist. Law Tram empowers you to make informed decisions.
This page provides general legal information only. It is not legal advice and should not be relied on as such. Restraint of trade clauses are fact-specific and subject to strict legal tests. You should seek advice from an Australian Legal Practitioner before agreeing to or enforcing these terms.
Note: “Free service” refers only to Law Tram’s platform and process, not the legal advice itself.
Law Tram offers a secure, efficient and supportive way to connect with lawyers who understand the legal issues involved in restrictive covenants and restraint clauses. Whether you are negotiating terms, reviewing a contract or assessing enforceability, our platform helps you access tailored legal advice before you proceed.
Take the first step with clarity and peace of mind by starting your free online consultation with Law Tram now.
It’s a clause in a contract that restricts someone from working in a certain industry, location or time period after selling a business or leaving a job.
They can be, but only if they are reasonable in scope, location and duration. Courts won’t enforce overly broad or unfair restrictions.
It depends on the wording. A lawyer can help you understand what activities are restricted and whether your plans are allowed.
Legal action may be available, including injunctions or damages. You should seek legal advice promptly if this happens.
Yes. Restraint clauses are often negotiated during the sale process. Legal advice ensures your rights are protected either way.
Not always. A restraint must be reasonable in scope, duration and geographical area. A lawyer can assess whether it is likely to be enforceable.
Yes. Buyers and sellers commonly negotiate the length, area and activities covered by the restraint to ensure it is fair and commercially workable.
You may face legal action, including injunctions or damages. Legal advice can help you understand your obligations and avoid accidental breaches.
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