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Trade clause

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Trade clause

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by MikeLittle.
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  • January 13, 2024 at 10:49 pm #697985
    samiaasif942
    Participant
    • Topics: 31
    • Replies: 4
    • ☆

    Will was an of Celeb plc. His contract had a valid restraint of trade clause him from setting up a business should he leave their employment. Will has since left Celeb plc and has formed a company Pigeon Ltd, which is now competing with Celeb plc.

    Can Celeb pic prevent Pigeon Ltd from competing with itand for what reason?

    Yes, because Will and Pigeon Ltd are regarded as the same person

    No, because the restraint clause only applied to Will and not to Pigeon Ltd

    No, because Pigeon Ltd was not in existence when the restraint clause was incorporated into the contract Yes, because Will is using Pigeon Ltd to evade his own legal obligations

    Please tell me the correct answer teacher

    January 14, 2024 at 8:54 am #697992
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    Hi

    I don’t recognise the question! What’s the source? What’s your answer? And what does the text say is the correct answer? And why do you not understand why your answer is incorrect and the printed solution is correct?

    Hope to hear from you soon (but, remember, I’m not here to do your homework!)

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