Joseph and Milena purchase a very successful Italian restaurant "Ciao" from Giuseppe. It is located on the famous Italian eatery strip in Lygon St in Carlton, Melbourne. To ensure Giuseppe does not establish a similar restaurant in the same vicinity, they include a term in the contract that prohibits Giuseppe "owning or managing" an Italian restaurant within a 20 km radius of Ciao's for five years.

Using the IRAC method, advise Joseph and Milena whether this term would be binding or void under the common law as a contract in restraint of trade.

Answer rating: 100% (QA)

Answer Issue The issue at hand is whether the term in the contract prohibiting Giuseppe from owning ... View the full answer