McKenzie v Baddeley

In *McKenzie v Baddeley* [1995] NSWCA 283, the New South Wales Court of Appeal considered a dispute between the appellant, McKenzie, and the respondent, Baddeley. The case concerned the interpretation and enforceability of a written agreement, specifically a deed, which contained a restraint of trade clause.

The central legal issue before the Court of Appeal was whether the restraint of trade clause within the deed was reasonable and therefore enforceable. This required the court to assess whether the clause went no further than was necessary to protect the legitimate interests of the party seeking to enforce it, considering the interests of the parties and the public.

The Court of Appeal, applying established principles of contract law concerning restraints of trade, found that the clause in question was indeed reasonable. The reasoning focused on the scope and duration of the restraint, determining that it was appropriately tailored to protect the respondent's business interests without unduly restricting the appellant's ability to earn a living. The court affirmed that restraints of trade are prima facie void unless they can be shown to be reasonable.