A. Enforceable contract provisions require fair understanding and appreciation at signing.
Did your employee really understand/appreciate contract provisions signed so many years ago?
In Cantol Ltd. v. Brodi Chemicals Ltd. et al. (1978), 23 O.R. (2d) 36, 94 D.L.R. (3d) 265, 42 C.P.R. (2d) 111, restraint of trade provisions were not enforced where the employee did not have much opportunity to not sign the contract, or if he did sign he did not read it or was not given the opportunity for independent legal advice.
In a similar case of Cradle Pictures Canada Ltd. v. Penner et al. (No. 2) (1977), 34 C.P.R. (2d) 34, restraint of trade provisions were not enforced where the defendant had not read over the employment contract, nor received reasonable opportunity for independent legal advice.
In many cases, employee may not have fully understood/appreciated legal impact of non-compete/non-solicit provisions, signed without prior/independent legal advice, signed under duress/only after having already forfeited competing employment opportunities, etc..
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment