Restraint Of Trade

Legal Definition and Related Resources of Restraint Of Trade

Meaning of Restraint Of Trade

At common law , contracts in restraint of trade are those with a stranger to the contractor ‘s business , which wholly or partially restrict the freedom of the contractor in carrying on that business as otherwise he would . See Northern securities Co. v United States , 193 U.S. 197, 24 S.Ct. 436, 48 L.Ed. 679. An agreement in general restraint of trade at common law is illegal and void. However an agreement in partial restraint of trade is good provided it is not unreasonable and there is consideration to support it. Oregon Steam Manf. Co. v Winsor, 20 Wall. 64, 22 L.Ed. 315. A contract in restraint of trade which is reasonable and does not involve the public welfare is also good in common law. See Gibbs v Consolidated Gas Co., 130 U.S. 396, 9 S. Ct. 553, 32 L.Ed. 979. In order to be binding, such a restraint must not be larger than is necessary for the protection of the party with whom the contract is made. Oregon Steam Manf. Co. v Winsor, ( supra ). federal anti- trust laws such as the Sherman Anti-Trust Act, Robinson-Pat- man Act, the clayton act are all aimed at the evil of monopoly and combinations in restraint of trade.

Restraint Of Trade Alternative Definition

Restriction of freedom of traffic. Restraint of trade of individuals may be general, or may be partial,’ in being limited as to time or territory. Contracts in general restraint of trade are void (8 Mass. 223) ; while those in partial restraint are valid (42 N. J. Eq. 185; 11 Ohio St. 349; 68 N. Y. 300), unless the time be so long, or the territory so extensive, that it amounts to a general restraint (36 Cal. 342). Contracts or combinations which operate in restraint of public trade are ordinarily void, though the restraint be put partial. 68 N. Y. 558.

Related Entries of Restraint Of Trade in the Encyclopedia of Law Project

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Restraint Of Trade in Historical Law

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This definition of Restraint Of Trade is based on the The Cyclopedic Law Dictionary . This entry needs to be proofread.

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See Also

  • Law Dictionaries.
  • Antitrust Laws ; Fair-Trade Laws ; Government Regulation of Business.

    Antitrust Law; Combination in Restraint of Trade.

  • Further Reading

    Gellhorn, Ernest, and Kovacic, William E. Antitrust Law and Economics in a Nutshell. 4th ed. St. Paul, Minn.: West, 1994.

    Hovenkamp, Herbert. Enterprise and American Law, 1836-1937. Cambridge, Mass.: Harvard University Press, 1991.

    Kinter, Earl W. Federal Antitrust Law: A Treatise on the Antitrust Laws of the United States. Volume 1: Economic Theory, Common Law, and an Introduction to the Sherman Act. Cincinnati, Ohio: Anderson, 1980.

    Jones, Eliot. The Trust Problem in the United States. New York: Macmillan, 1921.

    Shaffer, Butler D. In Restraint of Trade: the Business Campaign against Competition, 1918-1938. Lewisburg, PA: Bucknell University Press, 1997.

    Kimberly A.Hendrickson

    Restraint of trade in Law Enforcement

    Main Entry: Law Enforcement in the Legal Dictionary. This section provides, in the context of Law Enforcement, a partial definition of restraint of trade.


    See Also

    • Law Enforcement Officer
    • Police
    • Law Enforcement Agency

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