Saula was in huge financial distress therefore he sold his news agency business to the buyer he could find for $125,000 which included $25,000 for the goodwill in business. The company that had bought his business included a clause in the contract that stated:

"The vendor shall not commence or purchase another news agency business for the next 20 years and within 50km of the existing news agency".

Two years later, Saula is financially stable and want to invest in a news agency business because he is competent in that kind of business.

When Saula applied for registration of the business, the buyer of his business wants to take out an injunction against Saula.
Advise Saula, whether he can register and commence his business or not.

Use IRAC method to answer the question with reference to a relevant case law.

Answer rating: 100% (QA)

Issue Can Saula register and commence his news agency business despite the clause in the contract that he signed with the buyer of his previous news a... View the full answer