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Preventing other companies operating in a contract
9 Answers
Hi All,
I am not sure whether on any one on here will know, but just in-case, i'll ask.
Can a company prevent another company from operating within a certain premises, for instance, by writing it in a contract?
Let me see if I can illustrate what I mean here...
If Advertising Agency X offers advertising opportunities in Location A, but Advertising Agency Y also wants to offer advertising space within Location A (a completely different type as to what Advertising Agency X offers), can Advertising Agency Y really be prevented from doing this by Advertising Agency X stating this in their contractual aggreement between themselves and Location A?
Would this be in contradiction of some sort of law or rule imposed by the Competition Commission or other goverment organisation etc?
You see, the above situation prevents Advertising Agency Y from operating and recieving income...
Any help or points in the right direction to go with this question would be greatly appreciated.
Thanks in advance
Joe.
I am not sure whether on any one on here will know, but just in-case, i'll ask.
Can a company prevent another company from operating within a certain premises, for instance, by writing it in a contract?
Let me see if I can illustrate what I mean here...
If Advertising Agency X offers advertising opportunities in Location A, but Advertising Agency Y also wants to offer advertising space within Location A (a completely different type as to what Advertising Agency X offers), can Advertising Agency Y really be prevented from doing this by Advertising Agency X stating this in their contractual aggreement between themselves and Location A?
Would this be in contradiction of some sort of law or rule imposed by the Competition Commission or other goverment organisation etc?
You see, the above situation prevents Advertising Agency Y from operating and recieving income...
Any help or points in the right direction to go with this question would be greatly appreciated.
Thanks in advance
Joe.
Answers
Best Answer
No best answer has yet been selected by one-big-letdown. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.Any advertising space has to owned by a third party, I take it thats correct.
The third party can sign a contract with who ever they like, its thier property. If location A has more than one site and Y cannot negotiate with the third parties then thats perfectly legal.
However there was a case in London where the Metro newspaper signed a contract for dump bins on London stations but never used them in the afternoons. The London paper went to the OFT caliming that non use equated to restraint of trade and won.
But you would have to prove that X was trying to put Y out of business and going to the OFT is expensive and time consuming.
The third party can sign a contract with who ever they like, its thier property. If location A has more than one site and Y cannot negotiate with the third parties then thats perfectly legal.
However there was a case in London where the Metro newspaper signed a contract for dump bins on London stations but never used them in the afternoons. The London paper went to the OFT caliming that non use equated to restraint of trade and won.
But you would have to prove that X was trying to put Y out of business and going to the OFT is expensive and time consuming.
Thank You, davethedog.
It's like this...
Theres a place I want to put up some of my advertising frames, and charge other people to advertise in them (Location A). I will then pay a commission to Location A for the privilidge of doing so.
However, Location A says I cannot do this within their premises as Location X have said no-one else apart from them can offer advertising within Location A. Can they legally do this?
I'm not going to be offering the ame type of advertising as Agency X do...
Thanks all once again...
It's like this...
Theres a place I want to put up some of my advertising frames, and charge other people to advertise in them (Location A). I will then pay a commission to Location A for the privilidge of doing so.
However, Location A says I cannot do this within their premises as Location X have said no-one else apart from them can offer advertising within Location A. Can they legally do this?
I'm not going to be offering the ame type of advertising as Agency X do...
Thanks all once again...
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