The Common Law Doctrine of Restraint of Trade and Its Relationship with Competition Law

Introduction It is a well settled nonion in universal law that agreements which impose ramparts on trade are non enforceable. This notion was authentic further in the late nineteenth century and late 20th century and made applicable to what we call competition law in the USA. It is important to melodic line that the enactment of the Sherman Anti-trust Act, 1890 was a reason for this development. What is the correlation between simple mindedness of trade teaching and modern competition law? This oblige seeks to examine the relationship between the two by canvas back cases when the Sherman Act was newly enacted and the interpretation given by the US Supreme Court. The article has two parts. single-valued function I deals with the doctrine of restraint of trade in order to capture a clear understanding of it before stepping into part II where the correlation between the doctrine and competition law is analysed. Part III discusses the various provisions in different legislations enacted in India which deal with agreements in restraint of trade. Part- I The Common Law doctrine of Restraint of Trade Limitations on freedom of contract: public Policy imposes certain limitations on the freedom of individuals to contract. An ostensibly legitimate contract may be tainted with illegality.

The source of the illegality may arise by statute or by lawfulness of the principles of vulgar law. Agreements in Restraint of Trade: The doctrine of restraint of trade is a rule of public policy developed by the common law. It is a general principle of the common law that a person is entitled to undertake a lawful trade when and where he wishes. The common law does not favour agreements that prohibit or restrain a person in the exercise of a lawful trade, employment or profession. It protects the right of individuals to work and prevents them from disabling themselves from earning a living by an unreasonable restriction by the doctrine of restraint of trade. A principal aim of this doctrine is to prevent agreements... If you want to confirm a full essay, order it on our website: Orderessay

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