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Preventing old business partner starting rival business

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CinGirl77 | 12:31 Mon 07th Apr 2008 | Law
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I am about to buy out my business partner, and he has told me he is thinking about opening a similar business in a neighbouring town. Is this legal, and what can I do to prevent this?
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Of course.
You prevent it by drawing up an agreement that constrains what he can and can't do in competition. You will need the assistance of a solicitor. Such types of agreements are very common when salesmen are dismissed to prevent them working for a competitor and taking all their intellectual capital with them.
It will depend how far away he will be and for how long you try to impose a resrtiction. If you go for too long a period or too wide an area you may find the entire clause is voidable as a "restraint of trade".

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