Nekrews and another v PMAC Scientific Ltd

Contract law – Terms – Restraint of trade. Sheriff Appeal Court: Refusing an appeal in an action in which the pursuers and appellants demanded payment of a sum due under a share purchase agreement and the respondent averred that payment was no longer due because the appellants were in breach of contract, the court held that the clause of the contract on which the respondent relied could not be characterised as a contractual term which was in restraint of trade: there was no loss of liberty by the appellants; instead, they had agreed to secure, if they could, the co-operation of third parties and that did not engage the concept of the rule of restraint of trade as developed in the authorities.

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