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Daniel, Solicitor
Category: Australia Law
Satisfied Customers: 4860
Experience:  Bachelor of Laws (dist) Graduate Diploma in Legal Practise. Admitted NSW Supreme Court / High Court
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Does the Trade Practices Act (Australia) mean that you cannot

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Does the Trade Practices Act (Australia) mean that you cannot have contact with a previous "client" / do business with them for a specified time? How is it enforceable? Does it make a difference if the contact was not intended to solicit business but opportunistically a business transaction occured (pretty much at the request of the previous client)



No, such clauses are not enforceable as it is a restraint of trade.


Simple really.

In respect od the solicitation, it is not an issue.


Please accept.

Customer: replied 3 years ago.

Before I rate your response, I would like a little more detail please.


1. So if the clause is in someone's contract saying - you are not allowed to contact a "client" for minimum 6 months after you leave the company - you are saying it is NOT enforceable. Does this mean an employer cannot make that sort of condition? If so can you be more specific about restraint of trade, what do you mean? Does an ex employer not have the right to restrict someone else's business - and is it referred to in the Trade Practices Act?


2. Please explain why the "solicitation" is not an issue.







The issue is it is a restraint of trade. Meaning, a entity or person cannot really allow themselves to stop another from making profit. It is extremely hard to enforce such a rule or clause.

It is not stated in the trade practices act.

Solicitation is not an issue as solicitation is more of an illegal act, such as street sex workers, not speaking to ex clients.

Please acct
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