CONTRACTS Contracts in Partial Restraint of Trade: Restrictive Covenant Act

The Act provides that contracts in partial restraint of trade that are reasonable are valid and enforceable. The Act establishes rules for determining when a restrictive covenant is reasonable and establishes procedures for identification, clarification and reformulation of such covenants. Courts must enforce restrictive covenants independently of the enforceability of any other covenant, or part of a covenant, contained in a non-compete agreement. A post-employment loss or forfeiture provision conditioned upon the occurrence of subsequent competition does not constitute a restraint of trade and is enforceable regardless of the unenforceability of non-compete covenants contained in the same contract