TURNBULL v BOSS

In *Turnbull v Boss*, the Supreme Court of New South Wales was asked to determine a dispute between the plaintiff, Mr Turnbull, and the defendant, Boss. The core of the disagreement concerned the interpretation and enforceability of a contract for the sale of a business.

The primary legal issue before the Court was whether the contract, which included a restraint of trade clause, was valid and enforceable. Specifically, the Court had to consider whether the restraint was reasonable in scope, duration, and geographical area, and whether it went beyond what was necessary to protect the legitimate interests of the purchaser.

Justice Street found that the restraint of trade clause was too wide in its geographical scope and duration, and therefore void as an unreasonable restraint of trade. His Honour reasoned that the purchaser's legitimate interest in protecting the goodwill of the business did not justify such an extensive restriction on the vendor's ability to earn a living. The Court applied the established legal principles governing restraints of trade, which require such clauses to be no wider than necessary to protect the protected interest.

Consequently, the Court made orders that the restraint of trade clause was unenforceable.