What is a restrictive covenant? Following the case study below can you advise Tom as to the legality of the clause in his contract.

Tom is the top salesman for ABC Motors. He has been offered a job by a rival

company but is concerned because there is a clause in his contract which prevents

him from working for any other car company for five years.

Tom is the top salesman because he regularly tells potential customers what they

like to hear rather than the facts. He has done this in relation to ages of vehicles,

odometer readings and vehicle service histories.

Tom recently completed a deal to buy a vintage sports car for ABC Motors from

Barry. ABC now discover that Barry (not his real name) had stolen the vehicle.