Preventing old business partner starting rival business

[CinGirl77]

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?

[buildersmate]

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.

[dundurn]

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".