COMPARATIVE STUDY OF THE RESTRAINT OF TRADE CLAUSE IN THE LAWS OF IRAN, EENGLAND AND THE U.S
In its most commonly used form, the restraint of trade clause is a contractual clause to the effect that one party avoids engaging in certain business activities for a specified time or in a specified geographical area in a way that serves the other party`s commercial interests. This clause, however, should not be in conflict with law of contracts, competition law, consumer law, and other relevant rules of law. The restraint of trade clause can moreover be viewed in the perspective of contractual terms and right to depriving oneself of rights. Examining relevant rules in Common Law systems, particularly the English and the American law, this article concludes that despite the great respect in these systems for the fundamental principles of freedom of will and contractual freedom, they do not uphold the restraint of trade clause, unless the restraint is minor, serves a legitimate, reasonable interest and is not against the public interests or any specific laws. This research has employed analytical, descriptive method and library materials.
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